From New York Post · · 1m 30s
A co-op's $16M reserve mystery
An East Village co-op wants to sell a parking lot for $30M, and one shareholder wants to know where the money went first.
In brief
An East Village co-op wants to sell a parking lot for $30M, and one shareholder wants to know where the money went first. Before a co-op board sells off shared property, shareholders can use a books-and-records petition to force the numbers into the open. Originally reported by New York Post.
One resident goes to court
Village View shareholder Sebastian Kot filed a books-and-records proceeding in Manhattan Supreme Court to force the seven-building Mitchell-Lama complex to hand over its financial records.
Reserves fell off a cliff
A board presentation filed as a court exhibit shows reserves dropping from $18.6 million in 2021 to $2.9 million in 2026. Kot says nobody has explained the gap.
Years of paperwork problems
The petition alleges missing or inaccurate meeting minutes, financial disclosures that contradict each other, and repeated refusals to produce corporate records.
“It's an important step toward restoring transparency and lawful governance at Village View.”
The board says privileged
Village View's attorneys didn't comment, but told residents in a letter that the requested documents are privileged or confidential corporate records.
“are privileged and/or constitute confidential and sensitive corporate records”
What the $30M lot buys
Selling Parking Lot 7 next to 40 First Ave. could net about $30 million after taxes. The board says that clears recurring debt, refills reserves, and keeps 1,236 units affordable.
Who gets to approve it
Kot argues state business law requires a two-thirds shareholder vote. Hundreds signed a June petition, and a disabled resident sued in September over losing his space in the same lot.
The short version
Before a co-op board sells off shared property, shareholders can use a books-and-records petition to force the numbers into the open.
