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Fairfield Property Services


  • pg 1
(continued from page 2)                              value of a property. It provides a secure financial
Once the correct balance of price and quality is foundation in which to operate. Owners do not
ascertained, the work can proceed. When this takes have to be concerned about their infrastructure
place, it is obvious to the community that the board failing at some point without the funds to meet
                                                                                                                                               Fairfield NEWS
                                                                                                                                               SPRING 2005                                              VOLUME 6 ISSUE 1
                                                                                                                           A Publication of Fairfield Property Services • 66 Commack Road, Commack, New York 11725 • 631-499-6660
is functioning effectively.                          the need.

The last area that identifies the work of a functional   This sums up the work of a functional board; they             From The Director’s Desk
                                                         are fiscally responsible, efficient in carrying out
                                                                                                                                                                                                     Fairfield Invests
board is in the planning of long-range projects.                                                                       The Functional Board                                                        In the Lone Star State
Examples of projects that fall in this category are      projects, and plan for the future. Through these              Alvin Wasserman Director Fairfield Properties
rebuilding sewer treatment plants, replacing roofs,      practices, the board maintains the property and                                                                                          Calling it “another variable in
repaving a parking lot, replacing windows and            improves it to provide an attractive environment              The    functional board is the antithesis of the                           the successful equation of
doors, and so on. Depending upon the size of the         and increase its value for the owners.                        dysfunctional board. Several years ago, I wrote an                         Fairfield Properties,” Mark
                                                                                                                       article titled “Dysfunctional Boards” that appeared in                     Broxmeyer proudly boasted
property, these projects can run into hundreds of
                                                         Fairfield Property Services, L.P. assumes no responsibility   Habitat Magazine. The behavior of a dysfunctional                          about the acquisition of five
thousands of dollars. A fiscally responsible board
                                                         for any materials submitted for publication or for any        board manifests as egotism, indecision, failure to act,                    properties in Houston, Texas.
will establish a reserve fund to prepare for these       loss or personal injury arising out of the publication of
                                                                                                                       inappropriate anger, and ignoring facts. The functional
projects. Having a reserve fund can increase the         such materials.
                                                                                                                       board behaves quite differently.                                           The five properties feature
                                                                                                                                                                                                  1,737 apartments that is the
                                                                                                                       The decisions rendered by a functional board appear as if they             largest Fairfield acquisition to
            Fairfield Property Services                                                                                emanate from a unified body. Many decisions are compromises                date. “The success of Fairfield
                Meeting All Of Your Real Estate Needs                                                                  even if the vote is unanimous. The process is dependent upon               Properties has been simple,”
           66 Commack Road, Commack, New York 11725                                                                    communication between members until a consensus is reached.                said Broxmeyer,” we provide
                                                                                                                                                             quality apartment rentals at
                                                                                                                       Leadership plays an important part in the decision making process
                                                                                                                                                                                                  reasonable rates. Houston,Texas
                                                                                                                       and it can be centered in any one board member or several
                                                                                                                                                                                                  will benefit from the outstand-
                                                                                                                       members. A functional board efficiently reaches decisions and
                                                                                                                                                                                                  ing quality that is a Fairfield
                                                                                                                       effectively acts for the greatest good of the community.                   apartment.”
                                                                                                                       The good of the community is measured by
                                                                                                                                                                                                  Since their inception in 1974
                                                                                                                       what will provide the greatest happiness to a
                                                                                                                                                                                                  Fairfield Properties has set the
                                                                                                                       majority of its members.The board’s ability to
                                                                                                                                                                                                  industry standard when it
                                                                                                                       reason will determine whether decisions are                                comes to purchasing, improv-
                                                                                                                       made in the best interest of the community.                                ing and maintaining rental
                                                                                                                       Blackstone speaks of reason in his                                         properties on Long Island.
                                                                                                                       Commentaries on the Laws of England. Alvin Wasserman, Director             With approximately 5-thousand
                                                                                                                       He states that if reason were “…clear and perfect, unruffled by            rental units on Long Island,
                                                                                                                       passions, unclouded by prejudice, unimpaired by disease or                 Broxmeyer calls the Houston
                                                                                                                        intemperance, the talk would be pleasant and easy; we should need
                                                                                                                          no other guide but this.”A functional board is a reasonable board.            (continued on page 3)
                                                                                                                                                                         (continued on page 2)
  2                                                                                                                                                                                                                              3
(continued from front page)                        paid out of a reserve fund, by special assessment,                  (continued from front page)

How would a community recognize a functional or by incurring debt. It is preferable for boards to                      “another step in showing the entire country just how beneficial Fairfield can be in improving the look
board? Three major areas identify whether the work establish and maintaina reserve fund for contingen-                  and feel of a community, while at the same time increasing property values in surrounding areas.
of a board is functional or not.                   cies and future capital expenditures. A healthy                     This is truly a win — win for all involved.” Total cost of the acquisition is 70-million, 188-thousand dollars.
                                                   reserve fund, built up over time, keeps debt low or                 Michael Broxmeyer, a partner at Fairfield Properties calls the acquisition “expanding a
Sound Finances                                     non-existent and minimizes the need to tax owners                   quality product to a quality region, we take pride in the product we develop, and at the end of the day
Successful Completion of Short-Term Projects       with assessments. Once established, a reserve fund                  once the Fairfield Touch is added to the Houston properties, the tenants will see exactly what we are
Planning for Long-Range Projects                                                                                       boasting about.”
                                                   provides financial peace of mind for the community.

The work of a functional board is listed in this order                                                                 Gary Broxmeyer called the project “a result of
                                                           In any case, operating expenses should be met by            Fairfield’s vision, we take what we have learned on               Share A Favorite Recipe
because finances must be sound first. Carrying out
                                                           operating income, not by drawing down savings or            Long Island and share it with our new residents in
short-term plans is dependent upon sound finances.                                                                     Houston, our methods have served us well in the past                            Flakies
                                                           assessing the owners.An operating deficit will not go       and will continue to do so in the years to come.”
Long-range plans are dependent upon sound finances                                                                                                                                    Melt 1 1/2 ounce package of chocolate or
                                                           away by itself, it must be eliminated or it will grow
and the completion of short-term plans. A board can-                                                                                                                                 any other chips with 1 cup of peanut butter
                                                           with inflation. If a board lets a deficit grow, the funds   Fairfield Properties has made a tradition of acquiring
not do anything if their finances are not in order.                                                                    properties that are under maximized and creating a            in micro-wave on high, 10 seconds at a time
                                                           needed to bridge the gap will increase over time.           state of the art, up to date living facility with all the
Short-term plans cannot proceed without a solid                                                                                                                                                until melted stirring often.
                                                           To ignore a deficit is irresponsible.                       amenities. The deal was completed in January;                    Stir in 6 cups of corn flakes and drop
financial base and long-range plans are no more than
                                                                                                                       Fairfield Properties will continue to explore the                by the teaspoonful onto waxed paper.
a dream without the other two in order.
                                                           Every organization has limited funds, more or less.         potential of expanding to other states, while at the
                                                                                                                       same time providing consistent quality living for their
Sound finances begin with a balanced operating             A budget serves as a tool to live within one’s means,       residents on Long Island.
budget. A budget is the framework that defines the         to live carefully. Since so many individuals live their
                                                           financial lives impulsively, it is important for a board    “Although we’re expanding our business to make
financial parameters in which an organization                                                                          acquisitions in other states” said Mark Broxmeyer. “we will continue to keep Long Island as our
operates for a set period.Authorized expenditures fall     to keep a close watch on expenditures. It is very easy
                                                                                                                       number one priority providing top quality apartments at fair rates. We take pride in helping families in
within the budget framework. Expenditures outside          to justify spending; someone always comes up with a         our region find a place they can call home.” Fairfield currently has close to 5-thousand rental units
                                                           good cause. If expenditures exceed the budget,              throughout Long Island and plans to acquire and upgrade more using the Fairfield success formula.
the budget framework require board approval. This
should be a rare occurrence with careful considera-        the board will have to answer to the owners.
                                                                                                                       Helpful Phone Numbers                                   Emergency Number
tion of where the funds will come from to pay for          What did you do with our money? Why are our                                                                         The dedicated telephone number assigned to your
non-budgeted items.                                        charges going up?                                           Main Office                                             property appears on the Fairfield magnet that was
                                                                                                                       631.499.6660, 516.482.4934,718.659.6477                 mailed to homeowners. It is to be used for
                                                           Once the property’s finances are in order, the board        Fax 631.499.2042                                        reporting   community        emergencies      only.
Boards have a fiduciary responsibility to owners.                                                                                                                              Emergency hours are from 5 p.m. to 9 a.m.
The fulfillment of their fiduciary responsibility begins   can focus on short-term projects. Short-term projects                                                               weekdays and all day Saturday, Sunday and holidays.
                                                                                                                       Customer Service
with the preparation of a budget, and managing the         are budgeted and completed within the current fiscal
                                                                                                                       Suffolk County        631.499.6660, ext 273
                                                           year. The projects selected should be prioritized for                                                               Newsletter
affairs of the community within those parameters.                                                                      Nassau County         516.482.4934 ext 273              To submit information or ideas for the newsletter,
A budget consists of several components, income and        the greatest need. Contracts should be competitively        Queens                718.659.6477, ext. 273            please contact us at:
expenses from operations, debt service, capital            bid out to reputable contractors with proper in                                                                     Email:
                                                           surance coverage.                                           Billing Questions                                       Mail: Fairfield Properties
expenditures, and reserve funding.The budget should                                                                    Suffolk County        631.499.6660 ext 245              Attn: EPS Newsletter
have a positive cash flow after operating expenses                                                                     Nassau County        516.482.4934 ext 245               66 Commack Road, Commack, NY 11725
and debt service have been met. Capital expenses are       (continued on back page)                                    Queens               718.659.6477, ext 245    

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