N E W S
J U L Y 5
L E H A V R E
Le Havre Annual Shareholders
Budget Meeting 2019
Le Havre’s accountant, Carl Cesarano
WWW.QNS.COM | JULY 2019 | LEHAVRE COURIER 5
BY JILL DAVIS
Le Havre Owners Corp. held its
annual shareholders’ Budget & Finance
meeting on Thursday, June 27, to introduce
and explain the 2019/20 budget.
In addition to the Le Havre Board,
General Manager Margaret Costello,
attorney Geoffrey Mazel and accountant
Carl Cesarano also attended.
LHOC Board President Stanley
Greenberg began the meeting by
reviewing the status of some current
projects that are underway at Le Havre.
The lobby and hallways upgrades are
nearing the end and should be completed
by the end of July,” he reported.
Apartment door peepholes, painting
and base carpeting is being worked
on, and Stanley noted that in the latest
buildings that have been done,
the bases are temporary until the permanent
materials come in. He also
advised that memos will be going
out to residents for them to make an
appointment with the painter for touchups
on apartment doors.
The portico project continues, with
B30, 14 and 12 being done this year.
“The corridor in front of the clubhouse
and management office entry deteriorated
badly,” Stanley said, “and a new
ramp made of galvanized steel, which
will prevent rust, is being manufactured.”
In addition, the seawall repair
by B32 is expected to begin by the end
of the summer after adjustments are
made to the engineers’ drawings.
Stanley then addressed the financials.
By far, Le Havre’s primary source of
revenue—84%--comes from maintenance,
which will increase 2.96% for
the 2019/20 fiscal year. “We were able
to trim some items to bring the increase
in under 3%,” Stanley said.
On the expense side, the underlying
mortgage, real estate taxes and labor
costs account for the vast majority of
expenses. “Our mortgage is fixed,”
Stanley said, “but we needed to budget
for about an 8% increase in real estate
taxes plus about a 3% increase in labor
due to the union contract.” (A new
labor union contract went into effect in
April of 2018.)
Carl Cesarano spoke to the audience
about how Le Havre’s operating costs
compare to those of NYC at large. He
noted that the Price Index of Operating
Costs (PIOC) for all of NYC increased
5.5% in 2019. “We Le Havre are
having increases much less than the
statistical data,” he said. “Your board
is doing a really good job holding the
line.”
Stanley then addressed the NYCmandated
elevator upgrades, which
will involve all 32 of Le Havre’s elevators.
Phase 1, which has a 2020
deadline, requires the door lock mechanisms
to be replaced at a cost of
approximately $325,000. “By 2027,”
he said, “an entire modernization is
required, which is projected to cost
between $6 million and $6.5 million.”
He continued, “By then, our system
will be over 30 years old, although I
think we could go five years beyond
2027. Our elevators are running very
well, but 2027 is the city mandate.”
Stanley also noted that the $325,000
spent on the 2020 work “would be
gone, because that upgrade won’t adapt
to the 2027 work.” He pointed out that
Le Havre’s attorney, Geoffrey Mazel,
has been working hard to get the 2020
date pushed. Geoffrey explained that
“members of Le Havre’s board met
with Councilman Paul Vallone and 13
Queens Council members to move or
merge the dates. However, we have not
gotten feedback yet.”
Stanley reported that while the 2020
work can be paid for out of Le Havre’s
current reserve fund, money must be
accumulated for the major 2027 project.
To ease shareholders’ burden, a
small assessment earmarked specifically
for the elevators was started last year
and will build slowly over time. For
2019/20, the elevator assessment will
be $.03 (3 cents) per share.
A new local law, Local Law 97, was
also discussed. This is NYC’s new carbon
emissions bill (also known as the
“Green Bill”). The bill was enacted just
this past May, so there are many unanswered
questions at this time. Stanley
said, “We may have to do upgrades.
Our boilers must be tested, but we may
be fine with the common area lighting.
We don’t know yet.” Geoffrey elaborated,
“New York City formed an agency
to enforce carbon emissions rules.
The new law is pretty incomprehensible.
We do know it includes things like
common lighting, insulation, doors and
windows, and that there will be penalties
if retro-fits aren’t done. I am also
the attorney for the President’s Co-op
and Condo Council, and we’re looking
to get clarification.”
Geoffrey also reported that the co-op
and condo tax abatement has been extended
for one year. “It used to be extended for
three years,” he said. “De Blasio formed
a tax commission which was to have a
report out this past February but there is
still no report, so the extension right now
is only for one year.”
Carl remarked that “New York City
balances its budget on the backs of real
estate owners with nobody advocating
for people in co-ops or condos. Money
will have to be spent for improvements
that may not be really necessary.”
Board President Stanley Greenberg addresses shareholders
Shareholders gathered for the informative meeting
/WWW.QNS.COM
