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PRESENTATION
Monthly maintenance costs and rent restructuring process
0:20:24
ยท
53 sec
The project involves a rent restructuring process to ensure the buildings remain financially and physically healthy after converting to a cooperative. This process aims to cover all necessary expenses while keeping costs affordable for residents.
- Current TIL rents are insufficient to maintain the buildings adequately.
- Monthly costs will change through a rent restructuring process at the point of conversion.
- Initial monthly maintenance after conversion is set to 110% of projected expenses, providing a 10% cushion.
- Shareholders will collectively decide on annual maintenance increases, with a required 2% increase per year.
- Maintenance costs cover various expenses including insurance, utilities, staff salaries, and repairs.
Regina Lovitt
0:20:24
The Till rents that the residents are currently paying do not produce enough income to maintain the buildings.
0:20:29
The monthly cost through ANCP will change through a rent restructuring process at the point of conversion to ensure that all the buildings remain financially and physically healthy after they convert to coop.
0:20:40
The expenses required to maintain a building include insurance, heat and hot water, electric in public areas, maintenance staff salaries, water and sewer, accounting and legal expenses, extermination, and minor repairs, just to name a few.
0:20:54
The shareholders will collectively decide how much they would like to increase maintenance by annually based on future building expenses and income needs, but there is a required 2% increase every year per the AMCP term sheet.
0:21:07
For the co op to have enough money to cover the prior mentioned expenses, initial monthly maintenance after the buildings convert to cooperative have been set to 110 percent of projected expenses.