Sunday, December 31, 2006

DETAIL STATEMENT FROM ANNUAL REPORT CONCERNING $350,000 LOAN



RIVEREDGE OWNERS, INC.
NOTES TO FINANCIAL STATEMENTS (continued)
December 31, 2006

Note 3: LONG-TERM DEBT (continued) :

                   Certain stockholders agreed to lend the cooperative
Corporation a secured loan for a total amount of $350,000 as of
November 1, 2002.  The loan is secured by a 2nd mortgage (which
will be recorded at the time of any default) and an interest in
the assessment account. The loan matured and was paid in full
in 2006.

A special assessment in the amount of $4.50 per share was
charged in order to raise the funds to repay such loan.  The
assessment was charged at the rate of $0.1875 per share per
month starting September 1, 2002, for a period of four years.
The special assessment ceased in August, 2006.

Saturday, April 8, 2006

2006 - 16.72 % Maintenance Increase = $ 225,000 ANNUALLY

               RIVEREDGE OWNERS, INC. 
1 David Lane
Yonkers, New York 10701
                                                         April 8, 2006   $15.85 to $18.50/share ($2.65)= $ 225,000 ANNUALLY
Dear Fellow Shareholders:

The Riveredge Board of Directors* has been closely monitoring Riveredge's operation costs since it adopted the 2006 Budget last November. During the last six months, we have been hit with large increases in energy costs, real estate taxes and insurance that far exceeded our budgetary projections, leaving us with a large budgetary shortfall and no alternative other than to revise the 2006 Budget.


The Board of Directors must insure the financial solvency of the Riveredge and maintain the building on a sound financial basis. The Board therefore has decided that it must increase the annual maintenance to $18.50 per share, retroactive to January 1, 2006.

This decision is not made lightly. Over the past years, we have kept maintenance increases to a minimum. Operating costs had remained steady and we were aware that the assessment for the facade repair and new roof was a burden on shareholders (The assessment "burden" was $2.25 per share per year from 2002 thru 2006 - if you don't remember - AND - a total of $763,000 was collected). Unfortunately, in the last two years, and especially the last year, operating costs have begun to spiral out of control, due mainly to steep increases in energy costs. These increases have hit us both directly in higher fuel and electricity costs and indirectly in higher costs of goods and services, as well as in real estate tax increases as Yonkers' and Westchester County's costs have risen. Insurance costs have also increased dramatically.

The Board considered the option of extending the current assessment or to charge a maintenance surcharge to cover the budget shortfall, but these options do not address the fact that operating costs are an annual cost that will not decrease. Instead, these costs just keep going up.The current assessment was put in place to pay for the facade repair and new roof. It was not meant to be used for ongoing operating expenses. The monies collected are to repay a loan that is due on October 1, 2006. The assessment (burden) is scheduled to finish with the August, 2006 payment and there is no plan to extend the assessment.

The retroactive part of the maintenance increase will appear on the May invoice. Shareholders have the option of paying the retroactive increase with the May maintenance, or over two months with a charge of $10.

We have attached a financial analysis of the Riveredge's operational costs for your review. The Board will be available in the Lobby on Thursday, April 27, 2006 at 7:00 PM for any questions on the maintenance charge.

Thank you.

The Riveredge Board of Directors*

VOTE COUNT:  
AGAINST - Peter Merson Apt 8T
FOR:         - Glenn Keegan, Les Lew, Janet Henry, Karen Gongora,  Jane Hand