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Crocheron Terrace Shareholder Meeting 11/30/2023
Request for Comment
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Announcements 7/4/22
Crocheron Terrace
170-06 Crocheron Ave.
Flushing, NY 11358
Maintenance Increase Notice
On June 28, the Crocheron Terrace (“Co-op”) Board of Directors (“Board”) has approved to increase the maintenance by 20% effective as of September 1, 2022. As indicated in the “Proposal Notice” sent earlier this year and during the Shareholder meeting, the 20% maintenance increase is to cover the budget shortfall of $61K from the loss of the Sprint antenna contract.
Background:
In Oct. 2021, the Co-op had an antenna leasing contract with Sprint which produced $41K (Net of fee) of revenue per year. Due to the recent merger of T-Mobile and Sprint, Sprint had canceled its leasing contract with the building (T-Mobile has an existing contract with the building and did not need Sprint’s lease). Due to the early termination, the contract required Sprint to cover payments up till Feb. 2022. The Board and management had made several efforts to see if other companies would provide a similar lease to no avail. No contracts are available at this time.
In Feb. 2022, the insurance policy for the building came up for renewal. The new policy requested an increase of $20K per year. The increase in premium was a result of the fire in 2019 and fall/accident charges against the building.
As such, the building has an annual budget shortfall of $61K which will be covered by the 20% maintenance increase.
Please note, the Board proposed a motion of institute a flip tax which failed to received 2/3 shareholder approval and was suggested by various shareholders to revisit the motion after additional information could be provided for the use of the funds (ie, Heat Pumps, etc).
The Board will actively continue to find areas to reduce costs in the building (ie, Convert oil to gas, etc) in an effort to reduce or forestall any future maintenance increase.
Shareholder meeting proposal 5/24/22
Crocheron Terrace
170-06 Crocheron Ave.
Flushing, NY 11358
Proposal for Annual Shareholder Meeting
On March 29, the Crocheron Terrace (“Co-op”) Board of Directors (“Board”) reviewed the on-going budget shortfall and proposes the following measures to the shareholders:
1. Replacement of oil based heater and boiler – Require 2/3 of all Shareholder Approval
2. Flip tax – Require 2/3 of all Shareholder Approval
3. Temporary 20% assessment (Monthly increase of $142 for the largest unit) – Require only Board Approval
Background:
In Oct. 2021, the Co-op had an antenna leasing contract with Sprint which produced $41K (Net of fee) of revenue per year. Due to the recent merger of T-Mobile and Sprint, Sprint had canceled its leasing contract with the building (T-Mobile has an existing contract with the building and did not need Sprint’s lease). Due to the early termination, the contract required Sprint to cover payments up till Feb. 2022. The Board and management had made several efforts to see if other companies would provide a similar lease to no avail. No contracts are available at this time.
In Feb. 2022, the insurance policy for the building came up for renewal. The new policy requested an increase of $20K per year. The increase in premium was a result of the fire in 2019 and fall/accident charges against the building. Efforts to find other insurance policies have resulted in similar pricings.
In 2019, NYC passed the “Climate Mobilization Act” which requires the building to move away from the use of oil. Starting in 2024/2025, NYC will start to seek compliance of it requirements and impose penalties against buildings that do not conform.
As such, the building has a budget gap of $61K per year and a large modernization requirement. To cover this shortfall and be in compliance of the recent law, the Board would like to propose the following.
Proposal:
- Heat Pump/Boiler Change: One of the largest yearly expenditure is the use of oil to provide heat and hot water for the building. The building runs an annual oil expense of roughly $55K per year. To reduce the budget shortfall and remain in compliance with the “Climate Mobilization Act”, the Board would like to install Heat Pumps for every unit. Heat pumps run on electricity and will be charged against the unit’s individual utility bill. After the installation of the Heat Pumps/Boiler Change, the annual oil expense would drop to $0. Contractors estimate the total cost of the Heat Pumps/Boiler Change as $500K. The modernization would be financed by a loan. Contractors estimate installation of heat pump and the change in boiler will take only at most 2 days.
- Flip Tax: A flip tax would be imposed on every sale of shares in the Co-op against the selling price. Proceeds from the flip tax would be utilized to paydown the loan for the Heat Pumps/Boiler Change. The proposed flip tax would follow a sliding scale such that shareholders who had retained their shares for a longer period of time will owe the following tax rate at the time of sale (Note, the date of retention will start from purchase Closing Date to sale Closing Date):
Years Share Retained
Flip Tax Rate
2yr.
7%
4yr.
5%
6yr.
3%
8yr.
1%
10yr.
0%
- 20% Assessment: The assessment would be collected in the interim period till the Heat Pump/Boiler Change is paid-off. A lower assessment may be possible if the yearly loan bill is less than $61k.
Alternative:
If no other resolution can be obtained, the Board will be forced to increase the maintenance by 20% permanently. The maintenance will continue to rise to reflect for the increase in oil price and future penalties for non-compliance of the “Climate Mobilization Act”.
Shareholder General Meeting 6/7/22
NOTICE OF ANNUAL MEETING
OF
SHAREHOLDERS OF
Crocheron Terrace Owners Corp.
NOTICE IS HEREBY GIVEN that the Annual Meeting of the Shareholders of
Crocheron Terrace Owners Corp., 170-06 Crocheron Avenue, Flushing New York, will be held as follows:
DATE: Tuesday June 7th, 2022
TIME: 7:00 p.m.
LOCATION: 170-06 Crocheron Avenue Basement
The purpose of the Annual Meeting shall be as follows:
- To elect (5) five members of the Board of Directors to serve for a term of (1) year and until his or her successor shall have been elected and qualified;
- To vote on instituting a flip Tax and installation of heat pumps (resolution enclosed)
- To review the business affairs of Crocheron Terrace Owners Corp.’ and
- To transact such other business as may properly come before the meeting or any adjournment(s) thereof.
Enclosed please find a proxy. If you are not planning to attend the meeting, please sign it and return it to the management company.
Respectfully submitted,
THE BOARD OF DIRECTORS OF
CROCHERON TERRACE OWNERS CORP.
April 28th 2022
Maintenance Increase
Crocheron Terrace
170-06 Crocheron Ave.
Flushing, NY 11358
Maintenance Increase Notice
On July 29, the Crocheron Terrace (“Co-op”) Board of Directors (“Board”) issued the Maintenance Increase Notice (“Notice”) to notify shareholders that the Board, after thorough review of financials and operating expenses, passed a 3% maintenance increase and a 2% assessment fee effective as of September 1. The assessment fee is expected to expire as of 2023, but is subject to extension per Board approval.
Effective: September 1, 2021
Maintenance Increase: 3%
Assessment Fee: 2% (Effective for 2 years till 2023)
Background:
The Co-op has not increased maintenance fees as of Nov. 2005. Since the last maintenance increase, operating expenses have increased due to usage and inflation by ~$5K per year. The Co-op has funded the operating expenses through additional loans at refinancing. In 1988, the Co-op’s loan balance of $1.7 million increased to $1.9 million over 33 years adding $7K per year. In the event loan balances continue to increase, banks may not allow Co-op refinancing resulting in a negative impact to Co-op finances and shareholder value.
Maintenance Increase Alleviating Measures:
The following suggestions have been raised for residents to follow to help expire the assessment fee in 2023 and prevent future extensions:
- Proper disposal of Garbage will reduce the need to hire additional garbage disposers
- Utilization of Exterminator (Co-op provides the service free of charge) will reduce the frequency to perform exterminations in public areas
- Reduction of Heat/Oil Usage (A voluntarily unit temperature check will be performed the next two winters). This will help identify units with excess heat to install valves to control heat usage
Elevator Renovation January 2021
11/05/2020
*** NOTICE ***
Please be advised that in the beginning of January 2021 we will be replacing the elevator in the building.
Once the project starts, there will be no elevator service for 9 weeks.
We will notify you of the exact starting date once we find out from the contractor.
Management Company.
Notes from Public board meeting 1/21/2020
The election originally scheduled for 12/2/2019 was held, and the new board members are posted on the “Meet the board” page. No other decisions were made on this day. I am posting other topics that were brought up for later discussion.
Mailboxes – there have been complaints that the mailboxes are too small (too thin). Any changes have to affect all mailboxes equally. If we buy new mailboxes, we would have to buy a Post Office regulation size, and they will extend 12 inches further into the first floor space. The other choice is to construct a mailbox section outside in the garden.
Amazon deliveries – Amazon can install (free of charge) a door buzzer that will open the door when an Amazon headquarters triggers it for the delivery person. The packages can then be left inside the building instead of outside the main lobby door.
Instructions for using this website can be mailed by the managing agent to all unit owners mailing address, which might not be in the building.
There are leaks in two units where water is coming from outside brick walls into the apartments. There is a spray treatment that can be done during warm weather (April) although the permanent solution is to replace those brick walls in those units.
The next (private) board meeting will be 2/19/2020.
Notes from Public board meeting 12/2/19
1. The first topic is the likelihood of maintenance increases. Very simply, our building’s total mortgage over time has been rising, meaning that the corporation has been borrowing additional money when we refinance our short term mortgage loan, rather than paying it down. When we do go to refinance the mortgage, (which has to start in 2020 because the mortgage is due in 2021) we have to pay fees, and our cash reserves will affect the interest rate we can negotiate. The most reliable way to lower our mortgage is to increase the monthly maintenance fees. Our accountant recommends an increase.
There are some possible ways to raise income, which I hope will be included here. One of the proposals is for a building policy that will allow pets, and therefore raise the property value.
Another possibility is changing our heating cost by switching to gas from oil, which requires approval by NYC government (don’t know how long that will take).
2. We were unable to hold an election for board members on 12/2. The total number of owners at the meeting+ proxies was not enough to complete the election process as stated in the bylaws. If not enough people appear or put in a proxy vote, the people currently on the board remain on the board. When you do not vote, you are casting a vote for the current board.
3. Mike would like to remind everyone to get their apartment sprayed by the exterminator that visits every month. The service is already paid for.
4. The elevator needs to be replaced. There will be a nine week period in Spring of 2020 when the elevator will be out of service. We can discuss how to make it less inconvenient.