The Board of Directors understands the concerns of several shareholders regarding the 2025 maintenance increase. The 20% increase in maintenance fees was necessary to ensure the co-op will be able to meet its 2025 financial obligations resulting from the "Forced Insurance" policy imposed on us by our mortgage holder. We hope this post will help to explain the rationale and considerations that went into the decision.
- The mortgage on our property is for a total of $3,847,382 at an interest rate of 4.74%.
- Our insurance provider decided not to renew our policy in May, giving us an extremely short time to find another insurance policy, even though we remediated the issues we had with Aluminum wiring as required by the bank.
- Our mortgage holder imposed a "Forced Insurance" policy on the Co-Op, so that their interests would be protected in case of a disaster.
- In October, the Co-Op found and began coverage under a new insurance carrier, whose costs were more than triple the $73,500 cost of our prior policy.
Please be assured that the Board has and will continue to work hard to reduce costs, while maintaining financial stability. We believe that this increase will maintain and improve the value of your investment in this cooperative. We are always eager to hear any suggestions you may have to reduce costs. Please send those to management via email, in order that we may take them under consideration.
Thank you for your understanding and concerns.
Respectfully,
The Board of Directors
