Click for full PDF.The board of directors distributed their second newsletter of the year today. Among the highlights:
Community room renovation cost was $8,500 more than original quote of $73,000 — the additional money was used for new chairs, tables, and window treatments.
The coop has refinanced its underlying mortgage of $23.5 million with an interest rate reduction from 4% to 3.5%. The new financing allows for a $5 million line of credit that the newsletter says “serves as a reserve fund.”
Looks like that reserve fund will come in handy, as laundry room / sewer reconstruction costs are adding up. Building 4 cost a total of $283,700. Building 2 was higher, at $469,500. (Building 3 is set to start Monday, and building 1 will be next.)
One thought on “Board of directors’ newsletter hints at financial situation”
So we refinanced the mortgage but they neglected to tell us the cost of the refinancing and any pre-payment penalties; a $5M line of credit is not a reserve fund, ridiculous to even call it that. they board about free wifi in the community room but the community room is only available if you rent it, so what a complete waste. Finally, after 60 years we had to replace the sewer lines as an emergency repair. No planning for replacement ever in the coop. When asked at the annual meeting about capital repairs, nothing is “ever needed” and the buildings are in fine shape. It is time for change at ER.
So we refinanced the mortgage but they neglected to tell us the cost of the refinancing and any pre-payment penalties; a $5M line of credit is not a reserve fund, ridiculous to even call it that. they board about free wifi in the community room but the community room is only available if you rent it, so what a complete waste. Finally, after 60 years we had to replace the sewer lines as an emergency repair. No planning for replacement ever in the coop. When asked at the annual meeting about capital repairs, nothing is “ever needed” and the buildings are in fine shape. It is time for change at ER.