East Rockaway, N.Y., Code of Ordinances ch. 112 (eCode360 ed. 2026) § 112-7
Reserve fund
Operative Text
There shall be a reserve fund of the cooperative ownership which shall be not less than 1% of the total cash value of the shares as described in the plan or prospectus filed with the Attorney General of the State of New York.
East Rockaway Code of Ordinances Chapter 112, Section 112-7 requires cooperative housing entities to maintain a reserve fund at all times. This fund must hold at least 1% of the total cash value of the cooperative's shares, as that value is described in the plan or prospectus filed with the New York State Attorney General. The rule establishes a financial floor intended to ensure the cooperative retains a baseline level of liquid resources.
Plain English — not legal advice.
Under Section 112-7, cooperative boards and managing agents are generally expected to track the total cash value of shares as stated in the Attorney General-filed plan or prospectus and ensure the reserve fund never falls below 1% of that figure. Compliant operators typically establish accounting procedures to monitor the fund balance on a regular basis and replenish it promptly if it dips below the required threshold. Keeping clear documentation of the share valuation and corresponding reserve calculations supports demonstrable compliance with this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 112-7 establishes that residents of a cooperative governed by East Rockaway's Code of Ordinances have an interest in knowing that a reserve fund of at least 1% of total share value is being maintained by the cooperative. Shareholders or prospective buyers can review the plan or prospectus filed with the New York State Attorney General to understand the baseline share valuation that determines the required fund level. Those who believe the reserve fund requirement is not being met may consider raising the issue at a cooperative board meeting, consulting a tenant-rights or cooperative-housing organization, or exploring whether a complaint can be directed to a relevant oversight body.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated November 9, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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