Newsletter 229     Acrobat file     Return to archive     Newsletter 231

350 BLEECKER STREET CO-OP NEWSLETTER #230
January 16, 2010

The board met on January 12, 2010.  Among the issues discussed:

GYM CLOSING ON TUESDAY JANUARY 23, 2010

The rubber flooring in the gym needs to be firmly glued down.  A flooring contractor will work in the gym for about one week.  The gym should be open within seven days.  After the work is finished, the design committee will choose new lighting for the gym.

LOCAL LAW 11 INSPECTION

To comply with Local Law 11, the brick facade of our building must be inspected every five years by a licensed engineer. The building did not need a first inspection in 1999, since we had just finished a complete re-pointing of the entire building.

The co-op's engineering firm finished the second Local Law 11 inspection in 2006. Minor repair work was made in the parking garage and a few areas around the courtyard and roof.

Although the third Local Law 11 inspection must be completed in 2012, the board plans far ahead for this work.  Our engineer, Gene Kleinsmith, will perform the third inspection to find any potential problems.  The board expects the entire project to be around $10,000.

ADDITIONAL RENT DISPUTE

For the last few months the co-op and the sponsor have been unable to resolve a disagreement regarding the amount of additional rent owed under the master commercial lease.  Both sides are preparing for arbitration to resolve the dispute.  The board will keep you apprised of any significant developments.

ARREARS

The vast majority of shareholders pay maintenance charges on time.  Every now and then a shareholder neglects to pay maintenance.  Even though the economy has seen bad times, the arrears rate in the co-op is quite low; very few shareholders fall behind in maintenance.

When a shareholder is late in the payment of their maintenance, the managing agent's office, as a courtesy, usually calls the shareholder to remind them that their payment is overdue. The managing agent also sends a letter to the shareholder advising them of the late payment.  However, if after a certain period of time (usually two months) the overdue charges have not been paid, the co-op hands over the matter to its attorneys, at which point a formal default notice may be sent to the shareholder and additional legal steps may be taken to address the overdue charges.  The co-op does not wish to take these steps, but it has a responsibility to ensure that maintenance charges are paid on time as it is something that has a significant impact on the financial health of the co-op.

Please note that, if a shareholder is in default in the payment of their maintenance or any other charges due the co-op, in addition to all of the legal rights that the co-op has for the nonpayment of such charges, the co-op may bar residents (or residents' invitees) from using the gym.  In addition, a shareholder who is in default may not sublet their apartment.

As a final note, you can save on late fees by having your maintenance deducted electronically, automatically each month.  Many shareholders already use this procedure, and none has ever been charged a late fee.

SPONSOR LANDMARKS DISPUTE

As we mentioned in the October, 2009 newsletter, the chocolate store, Pure Dark, which is the tenant under a lease with the sponsor, did not properly file their awning, signage and exterior lighting with the Landmarks Preservation Commission. The city issued a violation against the co-op and required the violation to be cleared before approving any further building permits, including any permits for work within shareholder apartments.  In addition, the city indicated that should the co-op wish to have building permits issued for on-going work within the building pending the cure of the outstanding violation, the co-op could post a $10,000 escrow with the city to ensure the proper satisfaction of the violation.

The co-op posted the escrow and was assured by the sponsor that Pure Dark would promptly cure the violation. However,  last week the co-op received a notice from the city that detailed that the violation has not been rectified. The co-op is following-up with the sponsor to address the city's latest notice and the underlying violation.  The board will keep you apprised of any significant developments.

APARTMENTS FOR SALE

350 Bleecker Street Apartment Corp
January thru December 2009 Spending vs Budget
(unaudited)

 

Jan thru
12/31/09
Jan thru 2009 versus annual
12/31/09 Budget Budget
Income
Maintenance 1,330,854 1,330,810 100%
Special Assesment of Tax Rebate 100,015 90,000 111%
Late/legal fees 892 500 178%
Sublet fees 31,169 57,528 54%
Transfer Fees (2% of sales price) 0 0 0%
Repair charges 5,492 0 0%
Shareholders Total 1,468,423 1,478,838 99%
Commercial Rent 86,000 86,000 100%
Additional Commercial Rent 0 6,000 0%
Commercial Tenants 86,000 92,000 93%
Closet/Storage Charge 9,250 15,000 62%
Hallway Space -514 0 --
Bike Room 3,000 3,250 92%
Laundry Income 25,705 27,000 95%
Fees and Other Income 8,875 10,000 89%
Other Building Income 46,316 55,250 84%
Interest and dividends 543 1,000 54%
Total Income 1,601,282 1,627,088 98%
Expenses:
Payroll
Medical + dental insurance + ADP fees 71,515 67,916 105%
Payroll (incl Worker's Comp) 253,303 254,860 99%
Subtotal labor 324,818 322,776 101%
Utilities
Gas for steam heat + hot water 57,123 75,000 76%
Electricity + gas for cooking 23,228 37,500 62%
Water & Sewer 25,467 32,970 77%
Subtotal Utilities 105,819 145,470 73%
Building Services
Internet Services 0 0 0%
Cable TV 1,609 824 195%
Exterminator 3,825 2,678 143%
Landscaping/Rubish removal 14,612 9,500 154%
Exercise Room 1,665 1,000 166%
Laundry Service 1,333 1 --
Elevator Service 11,926 9,763 122%
Uniform cleaning 256 500 51%
Heating and Water Service 2,400 550 436%
Subtotal Services 37,626 24,816 152%
Repairs
Boiler, Plumbing, Compactor, A/C Repairs 7,673 7,000 110%
Electrical Repairs incl intercom 1,526 500 305%
Elevator Repairs 1,909 1,000 191%
Heating Repairs 12,269 5,000 245%
Painting Repairs 0 500 0%
Roof Repairs 0 0 --
Tenant Repairs 5,111 3,000 170%
Other Repairs 3,437 5,000 69%
Janitorial supplies 25,951 30,000 87%
Subtotal Repairs 57,876 52,000 111%
Professional Services
Management Fee (Tudor) 51,000 51,000 100%
Accounting 12,875 10,000 129%
Legal Fees 3,615 10,000 36%
Architect + engineer + inspection + consulting 10,247 3,500 293%
Professional Services Sub 77,737 74,500 104%
Insurance 50,145 52,236 96%
Other Expenses
Mortgage Interest & Principal 250,325 250,325 100%
Dues and subscriptions 3,429 3,000 114%
Other Building Expenses 290 1,500 19%
Subtotal Other Expenses 254,044 254,825 100%
Office Expenses
Phone 1,368 1,200 114%
Postage/Delivery 703 1,450 49%
Stationary/duplicating 76 350 22%
Subtotal Office Expenses 2,148 3,000 72%
Travel and G&A 1,541 1,100 140%
Real Estate Tax 697,873 696,366 100%
Contingency 0 0 0%
Reserve for Capital Budget 0 0 0%
Total Expense 1,609,625 1,627,089 99%
Tax rebate for 2009 100,015 80,000 125%
Net Income/(Loss) 91,672 79,999 115%

Footnote: at the end of December 2010 the co-op had $302,927.84 in cash.

 

Newsletter 229     Acrobat file     Return to archive     Newsletter 231

 

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350 Bleecker Street Apartment Corp.
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