Newsletter #215    Acrobat file    Return to archive    Newsletter #217

 

350 BLEECKER STREET CO-OP NEWSLETTER #216
October 21, 2008

The board met on October 14, 2008. Among the items discussed:

ANNUAL SHAREHOLDERS' MEETING AND LEASE AMENDMENT

The annual shareholders' meeting takes place on Tuesday, November 11, 2008. The meeting will be held, as in past years, at Synagogue Darech Amuno, located at 53 Charles Street (between Bleecker and West 4th Streets). All shareholders are encouraged to attend.

All current board members have been nominated: David Briman, Rob Geils, Jim Kafadar, Susan Kim, Jennifer Kish, Erin Larsen and Dan Mizrahi.

The board is considering changing the date of the annual shareholders' meeting from the second Tuesday in each November to a date in the late Spring or Summer. The co-op has a beautiful roof and courtyard, either of which would make a perfect venue for the meeting during the warmer months. And, this would save the co-op on the renting of space for the annual meeting.

In recent newsletters, the board noted that there had been several incidents of shareholders subletting their apartments without complying with the co-op's policy on subletting. In addition, the board was recently made aware of residents and real estate brokers mistakenly believing that a shareholder's apartment could be used for work-related purposes, as opposed to strictly residential purposes, without seeking the board's consent. To address these issues, the board, with the advice of its attorneys, decided that the provisions in the shareholder proprietary lease dealing with the use, sublet and transfer of an apartment should be updated to reflect the intent of the co-op's policy. Attached at the end of this newsletter is a proposed amendment to the shareholder proprietary lease. The provisions that would be modified are Articles 14, 15 and 16 of the shareholder proprietary lease. A vote of at least two-thirds of the co-op's shareholders is required in order to implement the proposed amendment. The amendment will be part of the voting materials circulated to each shareholder in connection with the annual shareholders' meeting. The following is a quick summary of the proposed amendment:

  • Apartments are to be used for residential purposes only.

  • If a shareholder wishes to use an apartment in connection with his or her occupation (for example, as a therapist, or a masseuse) then, provided the shareholder is already using the apartment as his or her residence, and provided that the shareholder obtains the written approval of the co-op, the shareholder may use the apartment for his or her occupation.

  • Only the following persons may occupy an apartment (together with the shareholder listed on the proprietary lease): (i) the shareholder's spouse or domestic partner; (ii) the children, grandchildren, parents, grandparents, brothers and sisters of the shareholder or the shareholder's spouse or domestic partner; (iii) a person who is not related to the shareholder (such as a roommate) and such person's dependent children, provided that the shareholder cohabitates the apartment with such unrelated person; (iv) domestic employees of a shareholder; and (v) guests of a shareholder for a period not to exceed 30 days, provided that the shareholder cohabitates the apartment with such guest.

  • If a shareholder wishes to have someone use or occupy his/her apartment other than those persons expressly permitted, then the shareholder will be required to obtain the written approval of the co-op. Consent of the co-op will be required for any proposed sublet or any proposed use by a person who is not expressly permitted to use an apartment.

  • A shareholder may, as of right (i.e., without the consent of the co-op), transfer his or her apartment to a spouse or domestic partner. If a shareholder wishes to transfer an apartment to any other person, including any other family member, then the shareholder will be required to obtain the written approval of the co-op. A shareholder may transfer an apartment to certain family members - such as children, grandchildren, parents, grandparents, brothers and sisters of the shareholder or the shareholder's spouse or domestic partner - however, the reasonable consent of the co-op will be required, taking into the financial capacity of the family member(s) to own the apartment, as well as the character and reputation of the family member(s).

    • Please note that, if a shareholder has a particular request that requires the approval of the co-op, the request should be submitted to the co-op's managing agent, Tudor Realty Services Corp., who will then submit the request to the board.

    WINDOW PROGRAM

    As we mentioned in last newsletter, during last month's meeting the board voted to reimburse shareholders 50% of the cost of new windows installed in their apartment. The installation must be done by the co-op's contractor using the new windows selected for the building. This program only applies to those shareholders who would like to replace their windows now, but will be retroactive to 2005 to the extent a shareholder replaced his or her windows in the last few years (subject to the board's approval on the particular window installation). The entire building will have its windows replaced some time in the next six years, at which time 100% of the cost will be paid by the co-op.

    Removing a window will create dust, and shareholders will have to paint and finish the wall surrounding the window after the installation. The best time to install new windows is if you are planning a renovation.

    Because the co-op is located in a Landmark District, the window job must be filed with the Department of Buildings. This process can take up to three months. When the City approves the co-op's filing for the window replacement, the co-op will proceed with installing the windows.

    HALLWAYS

    The work in the hallways is proceeding well. Most of the new carpeting has been installed. The job should be finished before October 24, 2008. There are minor items on the punch list that will need to be addressed before final payment is made to the contractor.

    Painting of the hallways, including the exterior of each apartment door, will begin soon. The walls and apartment doors will be primed over the next two weeks. Immediately after the walls and the doors are primed, the walls will be painted with Polomyx, a water-based paint. After the walls are painted, the apartment doors will be painted. The design committee will advise the board of the color scheme for the doors, which may be one color for an entire floor or multiple shades of the same color arranged in a consistent pattern (i.e., if three shades of blue are chosen, then every third door will be the same color). The color(s) will be chosen from the five samples which will be painted on five apartment doors on the sixth floor. The board hopes to have all the painting completed before the annual shareholders' meeting.

    Samples of the wall and door colors can be seen at: http://www.350bleecker.com/design/hallway.html.

    RECENT FINANCIAL CRISIS

    Many shareholders have asked questions about how the recent financial crisis will affect the co-op. No one can say with any certainty what will happen to the real estate market in the future or how the financial crisis, including the downturn in the real estate market, may impact the co-op's finances. So far, co-op prices in Manhattan have remained fairly steady and have not seen any of the significant declines exhibited by other markets in and around the New York area and the United States.

    Seven months ago at the board's April meeting, in an attempt to address a potential significant downturn in the real estate market in Manhattan, the board voted to decrease permissible mortgage financing of an apartment from 85% to 80%. This percentage is more in-line with other co-op's in Manhattan. However, it should be noted that notwithstanding the co-op's policy on permissible mortgage financing, many shareholders have elected to take on less financing (or in some cases no financing) on their apartments. As a result, overall the co-op’s apartments have a relatively high level of equity in relation to mortgage debt.

    STAFF MEMBER’S HOME DESTROYED

    On October 1st, our doorman Alfonso's apartment was lost in a fire. He and his family have been placed in provisional housing for the time being. If you would like to donate any clothes or other goods, please drop them off at apartment 3A or call Erin Larsen (917-208-1182).

    APARTMENTS FOR SALE

     

    The following will replace paragraphs 14, 15, and 16 in the proprietary lease.

    14.  Use of Apartment

              (a)  The apartment may only be used and occupied as a residence by Lessee and those individuals who are expressly permitted to use and occupy the apartment as set forth in this Paragraph 14 or as may be approved in writing by Lessor under this Paragraph 14 or Paragraphs 15 or 16 of this lease, and for no other purpose. The Lessee shall not, without the prior written consent of the Lessor on such terms and conditions as Lessor may prescribe in its sole and absolute discretion, use or occupy the apartment, or permit the same or any part thereof to be used or occupied, for any purpose that is not in conformity with this Paragraph 14 or the building's certificate of occupancy or any applicable zoning laws, statutes, ordinances, rules or regulations. The following individuals are expressly permitted to use and occupy the apartment: the Lessee; the Lessee's spouse or domestic partner; the children, grandchildren, parents, grandparents, brothers and sisters of Lessee or Lessee's spouse or domestic partner; one individual that is not related to Lessee and such individual's dependent children, provided and on the condition that the Lessee is then in occupancy of the apartment together with such individual; domestic employees of the Lessee; and individuals who are guests of the Lessee for a period of time not exceeding thirty (30) days, provided and on the condition that the Lessee is then in occupancy of the apartment together with such guest. Any other individuals that Lessee may wish to use or occupy the apartment shall require the prior written consent of Lessor.

              (b)  The Lessee shall, at the Lessee's sole cost and expense, promptly comply with all present and future laws, orders and regulations of all governmental agencies or public officers having jurisdiction of the apartment, with respect to the Lessee's occupancy and use thereof, and similarly comply with all orders, rules and regulations of the New York Board of Fire Underwriters or any similar body which shall impose any violation, order or duties upon the Lessee with respect to the apartment or the building arising out of the Lessee's use or manner of use or occupancy thereof. The Lessee shall not do or permit any act or thing to be done in or to the apartment which is contrary to law or which shall or might subject the Lessor to any liability or responsibility by reason of Lessee's occupancy or activity with respect to the apartment. The Lessee shall pay all costs, expenses, fines, penalties or damages which may be imposed upon the Lessor by reason of the Lessee's failure to comply with the provisions of this Paragraph 14. Subject to the provisions of this Paragraph 14, (i) the Lessee, in conjunction with its use and occupancy of the apartment as a residence, may use or occupy the apartment in connection with his or her occupation, subject to obtaining the prior written consent of the Lessor, and (ii) the Lessee who is a holder of Unsold Shares (as defined in Paragraph 38 below) shall have the right to use the apartment as a model or an office (or both) in connection with the sale or rental of apartments to which the Unsold Shares are allocated.

    15.  Subletting

              Except as provided in Paragraphs 17(b) and 38 of this lease, the Lessee shall not sublet the whole or any part of the apartment or renew or extend any previously authorized sublease, without obtaining the prior written consent of Lessor. Any consent to a subletting shall be subject to such terms and conditions as Lessor may prescribe in its sole and absolute discretion. There shall be no limitation on the right of Lessor to grant or withhold its consent to a proposed subletting, except as limited by law or the provisions of Paragraph 48 of this lease. No consent to a subletting shall operate to release the Lessee from any obligation hereunder.

    16.  Assignment; Executors, Administrators and Trustees

              

              (a)  The Lessee shall not assign this lease or transfer the shares to which it is appurtenant or any interest therein, and no such assignment or transfer shall take effect as against the Lessor for any purpose unless and until:

                        (i)  An instrument of assignment in form approved by the Lessor executed and acknowledged by the assignor shall be delivered to the Lessor; and

                        (ii)  An agreement executed and acknowledged by the assignee in form approved by the Lessor assuming and agreeing to be bound by all the covenants and conditions of this lease to be performed or complied with by the Lessee on and after the effective date of said assignment shall have been delivered to the Lessor, or, at the request of the Lessor, the assignee shall have surrendered the assigned lease and entered into a new lease in the same form for the remainder of the term, in which case the Lessee's lease shall be deemed cancelled as of the effective date of said assignment; and

                        (iii)  All shares of the Lessor to which this lease is appurtenant shall have been transferred to the assignee, with proper transfer taxes paid and stamps affixed; and

                        (iv)  All sums due from the Lessee shall have been paid to the Lessor, together with a sum to be fixed by Lessor to cover reasonable legal and other actual expenses of the Lessor and its managing agent, if any, in connection with such assignment and transfer of shares, except as provided in Paragraphs 17(b) and 38 of this lease; and

                        (v)  A search or certification from a title or abstract company as Lessor may require shall be delivered to the Lessor; and

                        (vi)  Except as provided in Paragraphs 17(b) and 38 of this lease and except in the case of an assignment of this lease and transfer the shares to which it is appurtenant or any interest therein to the Lessee's spouse or domestic partner, the Lessee shall not assign this lease or transfer the shares to which it is appurtenant or any interest therein, without obtaining the prior written consent of Lessor.

              (b)  If the Lessee shall die, Lessor shall not unreasonably withhold, condition or delay its consent to an assignment of the lease and the transfer the shares to which it is appurtenant to the Lessee's children, grandchildren, parents, grandparents, brothers and/or sisters of Lessee, provided and on the condition that the proposed assignee has the financial capacity to observe and perform all of the obligations of the Lessor and is of a character and reputation that is in keeping with the standards of the building.

              (c)  There shall be no limitation on the right of Lessor to grant or withhold its consent to a proposed assignment, except as limited by law or the provisions of Paragraph 48 of this lease.

              (d)  If the lease shall be assigned in compliance herewith, the Lessee-assignor shall have no further liability on any of the covenants of this lease to be thereafter performed.

              (e)  Regardless of any prior consent theretofore given with respect to any assignment, neither the Lessee nor any executor, administrator, trustee or receiver of the property of the Lessee, nor anyone to whom the interests of the Lessee shall pass by law, shall be entitled further to assign this lease or sublet the apartment, except upon compliance with the requirements of this lease. The restrictions on the assignment of this lease, subletting of the apartment and use and occupancy of the apartment, as hereinbefore set forth in this lease, constitute a special consideration and inducement for the granting of this lease by the Lessor to the Lessee. No demand or acceptance of rent from any assignee hereof shall constitute or be deemed to constitute a consent to or approval of any assignment. Neither the Lessee, executor, administrator, trustee or receiver of property of the Lessee, nor anyone to whom the interests of the Lessee shall pass by law, shall be entitled to occupy the apartment, or to assign this lease, or to sublet the apartment, or any part thereof, except upon compliance with the requirements of this lease.

              (f)  If this lease is then in force and effect, Lessor will, upon request of Lessee, deliver to the assignee a written statement that this Lease remains on the date thereof in force and effect; but no such statement shall be deemed an admission that there is no default under the lease.

     

     

    350 Bleecker Street Apartment Corp
    January through September 2008 Spending vs Budget
    (unaudited)

    January thru
    January thru 2008 9/30/08
    9/30/08 Budget vs. Annual Budget
    Income
    Maintenance 926,520 1,235,360 75%
    Special Assesment of Tax Rebate 85,470 80,000 107%
    Late/legal fees 165 1,000 16%
    Sublet fees 29,824 20,088 148%
    Repair charges 1,392 0 0%
    Shareholders Total 1,043,370 1,336,448
    Commercial Rent 64,500 86,000 75%
    Additional Commercial Rent 0 6,000 0%
    Commercial Tenants 64,500 92,000 70%
    Closet/Storage Charge 375 500 75%
    Hallway Space 356 0
    Bike Room 3,250 2,800 116%
    Laundry Income 2,665 10,000 27%
    Fees and Other Income 8,433 5,000 169%
    Other Building Income 15,079 18,300 82%
    Interest and dividends 933 1,000 93%
    Total Income 1,123,882 1,447,748 78%
    Expenses:
    Payroll
    Medical + dental insurance + ADP fees 49,764 48,570 102%
    Payroll (incl Worker's Comp) 182,335 245,829 74%
    Subtotal labor 232,099 294,399 79%
    Utilities
    Gas for steam heat + hot water 54,315 62,500 87%
    Electricity + gas for cooking 17,162 37,500 46%
    Water & Sewer 22,238 22,739 98%
    Subtotal Utilities 93,715 122,739 76%
    Building Services
    Internet Services 0 0 0%
    Cable TV 585 694 84%
    Exterminator 1,556 4,653 33%
    Landscaping/Rubish removal 9,088 12,500 73%
    Exercise Room 769 1,000 77%
    Elevator Service 9,651 9,763 99%
    Uniform cleaning 254 500 51%
    Heating and Water Service 526 550 96%
    Subtotal Services 22,430 29,660 76%
    Repairs
    Boiler, Plumbing, Compactor, A/C Repairs 6,736 6,000 112%
    Electrical Repairs 263 500 53%
    Elevator Repairs 0 1,000 0%
    Heating Repairs 189 5,000 4%
    Painting Repairs 400 500 80%
    Roof Repairs 0 5000 0%
    Tenant Repairs 1,853 2,500 74%
    Other Repairs 2,163 10,000 22%
    Janitorial supplies 26,304 24,000 110%
    Subtotal Repairs 37,908 54,500 70%
    Professional Services
    Management Fee (Tudor) 37,330 49,773 75%
    Accounting 14,500 8,400 173%
    Legal Fees 27,195 10,000 272%
    Architect + engineer + inspection + consulting 4,060 3,000 135%
    Subtotal Professional Services 83,085 71,173 117%
    Insurance 36,031 57,291 63%
    Other Expenses
    Mortgage Interest & Principal 187,744 250,325 75%
    Dues and subscriptions 2,125 3,000 71%
    Other Building Expenses 7,000 1,000 700%
    Subtotal Other Expenses 196,869 254,325 77%
    Office Expenses
    Phone 905 1,200 75%
    Postage/Delivery 1,004 1,050 96%
    Stationary/duplicating 194 350 55%
    Subtotal Office Expenses 2,103 2,600 81%
    Travel and G&A 1,972 1,000 197%
    Real Estate Tax 421,726 555,061 76%
    Contingency 0 5,000 0%
    Reserve for Capital Budget 0 0 0%
    Total Expense 1,127,938 1,447,748 78%
    Tax rebate for 2006 87,986 80,000 110%
    Net Income/(Loss) 83,930 80,000 105%

     

    Footnote: at the end of Sept 2008 the co-op had $347,007.79 in cash.

     

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