Condo 1A Did NOT Need a Special Assessment!

There are some who claim that Condo 1A needed to be special assessed like Condo 1 to pay for the increase in insurance rates in June 2022.

The numbers say otherwise.

The June 2022 insurance finance show the premium amount and finance charges for financing the insurance payments over a year. For commercial insurance, which condo associations use, payment for the entire year is due in advance. There are commercial finance companies that loan insurance customers the premium money which is then paid back over the term of the policy.

The bills for our two policies are here and here.

For your convenience, I put the numbers in a spreadsheet. The total payment for Condo 1A without finance charges is $275,443.09. The spreadsheet also shows that if Condo 1A paid cash instead of using financing to pay for the insurance would have saved $6393.34.

Condo 1A had a cash balance of $ 410,900.94 which can be verified by checking the worksheet for June 2022 and the June 2022 financial report available on Front Steps.

$410K is much more than $275K. Therefore, Condo 1A could have paid its share of the full year's insurance in June 2022 with its cash on hand in that month. Making monthly payments would certainly not be a problem. Also, if Condo 1A had paid cash instead of financing its insurance payments, it would have saved over $6K for Condo 1A owners. Plus, the expense and inconvenience of a special assessment for Condo 1A could have been avoided.

Look at the numbers and decide for yourself what's true.

Comments

Post a Comment

Popular posts from this blog

Board Critique

 Huntington Lakes Section 1 Association has been badly mismanaged. This is evidenced by deficits in Condo 1 and special assessments. Both indicate bad budgeting and poor financial planning. The purpose of this blog is to inform you of what is going on in your association based on verifiable facts instead of stories told by people who want to be on the board because they like running things their way. That is, without regard for the law, our by-laws, good accounting practices, good financial management, and respect for their fiduciary responsibility to owners. The deficit budgets we've had are illegal and against our by-laws. However, most board members don't care - they literally don't care even when informed of this. Instead of following the law, they seek questionable professional opinions to avoid following the law. These rules are designed to protect owners from boards financially ruining them. Breaking the law may seem like a good approach in the short run, but it lead...
Read more

Howard Laufer

  Howard Laufer (Building 7) Candidate for Huntington Lakes Section 1 Board of Directors Thank you for taking the time to read this short Bio about me and why I am asking for your vote to become your representative as a Board Member.   I used to live up north in Whitestone Queens NY.   I moved to Huntington Lakes several years ago mostly to look after my parents who live in Section 5.   It seems every day there is another doctor that they need to go to and I am glad that I am here and able to help them. Why Choose me: I believe my background in Construction and Building Maintenance will be an asset to both you and our Condo Board.   I have owned and operated several businesses throughout my career including a Burglar Alarm & Fire Alarm company, and Building Construction Companies.    I have had many employees and clients and I have learned how to treat people with respect.   I have extensive knowledge using computer programs like Word,...
Read more

Condo 1 was Borrowing about $60K from Condo 1A at end of 2022

 The cash balance for Condo 1 at the end of December 2022 was about -$60K. Yes, negative $60K. Thank you to the owners in Condo 1A for supplying money for Condo 1 operating expenses. The details can be found in this Excel file that shows separate balance sheets for the two condos calculated from the monthly financial report. Here is the cash summary: Total Condo 1 Condo 1A Current Assets Valley Account $ 351,426.35 $ (59,474.59) $ 410,900.94 Southstate Account $ 127.54 $ 127.54 $ - Total Current Assets $ 351,553.89 $ (59,347.05) $ 410,900.94 After the January 2023 maintenance payments, Condo 1 will have a positive balance again until March. The cash deficit will be even higher then since the 2023 budget was done poorly and doesn't cover expenses. Of course, we won't see the March 2023 financial report until April 20,2023 which is well after the board election. Then the current board members who voted for the budget will, if reelected, probably be shocked and surprised at the u...
Read more