Coop Financials

Bump. Anyone care to comment based on what they have seen in their review of financials?

Coop reserves fluctuate greatly depending on whether they have just paid their real taxes which are twice a year. If the reserves are 1 month after just paying the taxes (typically paid in End Dec or very early Jan), it is fine. Also, does the coop have a line of credit they can draw upon for meeting contingencies? Assessments are common in coops to pay for major repairs such as local law 11. What is history or assessments and is there one coming? BTW, your lawyer and broker should advise you on matters such as this .

Same questions as 300_Mercer. Not ideal but not uncommon in my limited experience. If they have no LOC or have fully tapped LOC, I would be concerned; however, if they have an LOC that has zero balance, I personally would not be overly concerned with the caveat that I would check the overall debt-load of the corporation, its history and current LTV.

Check to see if there is a separate "reserve fund", "capital fund", etc. Some buildings keep 2 separate accounts, 1 for purely monthly recurring expenses and one for capital projects, etc

One month is very low, definitely not typical. 3 months is more of a minimum, a healthy co-op will have more like 6+ months in reserves.

As a bare minimum, Fannie Mae requires a reserves of 10% of the annual maintenance income, so a building with one month (8.3%) would be tough to get a mortgage for:

https://multifamily.fanniemae.com/sites/g/files/koqyhd161/files/migrated-files/content/fact_sheet/coops.pdf

There are financial statements for many buildings available at http://apartment.report/, it's worth taking a browse there for an idea of what's typical.