Treasurer’s Update

FORDHAM HILL OVAL We Are On Solid Footing

By Blandon Casenave

This past year has been a very trying one for our community and nation as a whole. I’d like to again thank the shareholders at Fordham Hill for keeping our community afloat, by continuing to make timely payments of their monthly maintenance charges. As a corporation that puts people first, I know we did the right thing by suspending late fees, which contributed to a very slight operating deficit this year. I speak for the entire Board Of Directors, when I say we know that we made the right decision and that we would do it again.

Generally speaking, our expenses fall into two buckets - Operating & Capital. As most of you should be able to recall, in November of 2018, Fordham Hill Owners Corporation (FHOC) refinanced its mortgage, netting about $19M dollars after closing costs and fees. Those funds are being used to fund large capital improvement projects such as the completion of Local Law 11 facade brickwork, a mechanical elevator upgrade, and a total electrical upgrade as well as parapet and roof work. There are also two smaller projects that are slated to come out of the capital budget as well, and those are the children’s playground and a new residential gym.

Our maintenance charges are a part of our operating budget, and the Co-op’s mortgage is included in our monthly fees. We will have to pay the mortgage finance charges whether we spend the funds on capital projects or not. The pressures on our maintenance charges of late do not come from the finance charges on the new loan, but rising costs for maintenance and repair for everything else, as well as a 73% increase in our insurance premiums ($500K annually). While there were several factors that drove our premiums up, the largest factor was having multiple capital projects happening at once and the 70-year-old electrical panels in the basement. Years of “kicking the can down the road” on getting ahead, starting with the electrical upgrades finally caught up to the corporation.

The good news is that the electrical work has been initialized, and many of the other capital projects that were underway are now in their final stages. After nearly a decade of sorely needed capital projects, we should see a lull in the activity.

I know that rising costs are hard on everyone. We have young families who are juggling their own expenses. We have others on fixed income, and it seems that the cost of living will not stop rising. On one hand we have those who are demanding more for their money, and want to see amenities like a playground and a gym, while on the other, there are those who feel that we shouldn’t spend at all because times are hard. Nevertheless, we are determined to continue to provide quality, safety and cleanliness here at Fordham Hill Oval for all those who reside here.

We know that we are long way from being perfect, but I do believe we provide the best value per dollar anywhere in this city. Our maintenance increases are driven by our cost of living, because after all – “living has a cost.”