Page 9 - NY Cooperator July 2019

COOPERATOR.COM THE COOPERATOR —JULY 2019 9 Make the Right Mortgage Choice. $170,000 Brooklyn, NY Residential Underlying Co-Op $300,000 New York, NY Residential Underlying Co-Op/Retail $250,000 Brooklyn, NY Residential Underlying Co-Op 220 RXR Plaza, Uniondale, NY 11556 • www.FlushingBank.com Patrick Akosah 718.512.2798 MLO #674966 Patrick Dolan 718.512.2817 MLO #1016524 Cindy Lam 718.512.2816 MLO #410081 Daniel Lee 718.593.8067 MLO #64756 Anthony Montalbano 718.512.2731 MLO #1180405 Christopher O’Hara 718.512.2809 MLO #673112 Michael Pollis 718.512.2911 MLO #1703994 Community lending expertise with personal service. At Flushing Bank, we are focused on exceeding your goals. Composed of experienced lenders with local market knowledge, Flushing Bank’s Real Estate Lending team is ready to help you with your real estate mortgage solution. As a leader in community lending, we provide competitive rates, including long-term, fixed-rate loan programs. Call us today to discuss a mortgage solution that is right for you. Flushing Bank is a registered trademark FB 952 - RMU Cooperator UPDATE.indd 1 12/13/18 11:13 AM condominium’s receivables.” In other that there are potential ramifications of dents, and that maintenance or common work wasn’t anticipated, but the share- words, the association’s monthly common not replenishing. Buyers’ attorneys may charges should be increased by two or holders were grateful they had a properly- charges and reserve accounts are pledged be uncomfortable with the low reserves, three percent each year on a regular basis funded capital reserve to get the needed as collateral against the loan – making the regardless of whatever major work has to keep up with inflation, and to get resi- reserves even more important. “Lenders already want to see that they have adequate re- serves,” reiterates Freedland. When the Big Stuff Is Done Say you live in a successful, mature and reserve require- well-functioning co-op property. Over ments that must the past few years, the building has pretty be met, regard- much handled all the major repairs and less of how new maintenance needed to keep it in good the roof is. Ac- shape for the immediate future; the boiler cording to all of has been refurbished, conversion from our experts, the oil to gas is complete, the roof and side- walks have been replaced, the elevators plenishment is upgraded, and the lobby and hallways re- decorated. Everything looks amazing and small monthly the building’s reserves are slowly building increments in- back up from all the major outlays, though cluded in com- it’ll take awhile for them to fully rebound. mon charges or Do you need to rush to replenish your re- serve accounts to previous levels? “If it’s a timing issue, and if the build- ing has done all necessary work, it’s an reserve funds should never be used to was required to install new valves in each individual decision,” says Prisand, adding subsidize lower monthly charges to resi- been done. Poten- tial lenders will have minimum best path to re- slowly through m a int en a n ce so the financial pain is minimized. They also suggest that routine visit by Con Edison. The building dents used to the idea of reg- ular increases, co-op and condo buildings need savings just in case. A Case in Point Bruck relays that’s why it’s called an emergency. Keep- a story about ing those reserves at an acceptable level his own co-op, a protects the association or corporation 220-unit build- ing on Man- hattan’s Upper nance. Like an insurance policy, reserves West Side. The guard us against the unexpected, both building, which physically and financially. was in top over- all condition and financially healthy, ran into an acute prob- lem with its gas meters after a apartment at a substantial expense. The work done immediately. Saving for a ‘rainy day’ is not only good advice, but good policy. Like individuals, in the form of reserve funds. We never know when an emergency will occur; and the residents against the unknown and helps them plan for regular mainte- ■ A J Sidransky is a staff writer/reporter for The Cooperator, and a published novelist. “ If a corporation or association is underfunded, the building has no cushion from these new requirements, and these are potentially expensive. You must also be able to maintain your physical infrastructure and do other repairs at the same time.” —Greg Cohen