<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR
ENDED DECEMBER 31, 1996 OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 For the transition
period from to
Commission file number 333-12551
A. Full title of the plan and the address of the
plan, if different from that of the issuer named below:
Home Properties of New York Retirement Savings Plan
---------------------------------------------------
B. Name of issuer of the securities held pursuant to
the plan and the address of its principal executive office:
Home Properties of New York, Inc.
850 Clinton Square
Rochester, New York 14604
REQUIRED INFORMATION
The Home Properties Retirement Savings Plan (the "Plan") is
subject to the Employee Retirement Security Income Act of 1974
("ERISA"). Therefore, in lieu of the requirements of Items 1-3
of Form 11-K, the financial statements and schedules of the Plan
for the two fiscal years ending December 31, 1996 and 1995, which
have been prepared in accordance with the financial reporting
requirements of ERISA, are filed herewith as Exhibit 99.1 and
incorporated herein by reference.
Page 1
<PAGE>
EXHIBITS
Exhibit
Number Description
- ------- -----------
99-1 Financial Statement and Schedules of the Plan for the
two fiscal years ending December 31, 1996 and 1995
99-2 Consent of Cortland L. Brovitz & Co., P.C., independent
accountants
Page 2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who adminster the employee
benefit plan) have duly caused this annual report to be signed on
its behalf by the undersigned thereunto duly authorized.
HOME PROPERTIES RETIREMENT SAVINGS PLAN
Date: June 26, 1997 By: /s/ David P. Gardner
-------------------------------
Name: David P. Gardner
Title: Chairman of the Administrative
Committee, the Administrator of
the Plan
Page 3
<PAGE>
Exhibit 99-1
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
TABLE OF CONTENTS
Independent Auditors' Report 1
Statements of Net Assets Available for 2
Benefits
Statements of Changes in Net Assets Available 3 - 4
for Benefits with Fund Information
Notes to Financial Statements 5 - 9
- ---------------------------------------------
Independent Auditors' Report on the 10
Supplementary Information
Schedule of Assets Held for Investment 11 - 12
Purposes
Schedule of Reportable 5% Transactions 13
<PAGE>
INDEPENDENT AUDITORS' REPORT
To The Board of Trustees of
Home Properties of New York, L.P.
Retirement Savings Plan
Rochester, New York
We have audited the accompanying statements of net assets
available for benefits of Home Properties of New York, L.P.
Retirement Savings Plan as of December 31, 1996 and 1995, and the
related statements of changes in net assets available for
benefits with fund information for the years then ended. These
financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements, referred to above
present fairly, in all material respects, the net assets
available for benefits of the Plan as of December 31, 1996 and
1995, and the changes in net assets available for benefits with
fund information for the years then ended, in conformity with
generally accepted accounting principles.
Respectfully Submitted,
/s/ Cortland L. Brovitz & Co., P.C.
Cortland L. Brovitz & Co., P.C.
Certified Public Accountants
Rochester, New York
April 29, 1997
Page 1
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996 AND 1995
ASSETS 1996 1995
<S> <C> <C>
Investments at Fair Value (Notes
2 and 3):
Money Market Funds $ 21,337 $ 21,634
Collective Investment Trust - 948,280
Guaranteed Investment Fund
Common Trust Fund 184,934 -
U.S. Government and Agency 409,433 -
Obligations
Common Stock 268,667 -
Participant Loans 48,755 64,689
---------- ----------
Total Investments at Fair Value 933,126 1,034,603
---------- ----------
Receivables
Employer Contributions 150,614 38,852
Participant Contributions 23,954 39,734
Participant Loans 2,212 2,497
Accrued Interest 8,700 71
Due From Custody First 655 -
---------- ----------
186,135 81,154
---------- ----------
Total Assets 1,119,261 1,115,757
LIABILITIES - -
---------- ----------
Net Assets Available for $1,119,261 $1,115,757
Benefits ========== ==========
</TABLE>
See Notes to Financial Statements.
Page 2
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR
BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1996 WITH COMPARATIVE TOTALS FOR
1995
Participant Directed
------------------------------------------------------------
Growth With Participant Pre-1996 1996 1995
Long-Term Reduced Company Notes Other Trust Total Total
Growth Volatility Stable Stock
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASES IN NET
ASSETS
Investment Income:
Interest and $ 16,961 $ 8,325 $ 9,330 $ 670 $ 3,945 $ - $ 1,844 $ 41,075 $ 7,093
Dividends
Net Appreciation
in Fair Value of
Investments (Note 36,488 2,346 - 3,838 - - - 42,672 48,463
3)
Total Investment 53,449 10,671 9,330 4,508 3,945 - 1,844 83,747 55,556
Income
Employer 91,745 27,251 20,538 10,885 - - - 150,419 38,657
Contributions
Participant 202,054 64,200 47,419 3,753 - - - 317,426 258,299
Contributions
Rollover 4,672 20,077 - - - - - 24,749 4,529
Contributions
Total Increases 351,920 122,199 77,287 19,146 3,495 - 1,844 576,341 357,041
DECREASES IN NET
ASSETS
Distribution of - - - - - - 455,353 455,353 -
Assets Spin-off
Plan
Benefits Paid to 37,297 36,751 32,530 - 703 - - 107,281 120,984
Participants
Administrative 5,765 2,659 1,779 - - - - 10,203 -
Expenses
Total Decreases 43,062 39,410 34,309 - 703 - 455,353 572,837 120,984
Net Increase Prior 308,858 82,789 42,978 19,146 3,242 - (453,509) 3,504 236,057
to Interfund
Transfers
Interfund 309,925 116,165 159,431 31,019 45,513 195 (662,248) - -
Transfers
Net Increase 618,783 198,954 202,409 50,165 48,755 195 (1,115,757) 3,504 236,057
(Decrease)
Net Assets - - - - - - 1,115,757 1,115,757 879,700
Available for
Benefits -
Beginning
Net Assets $618,783 $198,954 $202,409 $50,165 $48,755 $195 $- $1,119,261 $1,115,757
Available for
Benefits - Ending
</TABLE>
See Notes to Financial Statements.
Pages 3 & 4
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
Note 1 Description of Plan
The following description of the Home Properties of New
York, L.P. Retirement Savings Plan provides only general
information. Participants should refer to the Plan
agreement for a more complete description of the Plan's
provisions.
General
The Plan is a defined contribution plan covering all
employees who are 21 years of age and who have completed
one year of service. It is subject to the provisions of
the Employee Retirement Income Security Act of 1974
(ERISA). Prior to January 1, 1996, the plan covered the
employees of Hauser Corporation and Fluoro Film, Inc.
Effective January 1, 1996, the assets associated with
participants employed by Hauser Corporation and Fluoro
Film, Inc. were spun-off into their own plan.
Trust
State Street Bank and Trust Co. (Exeter Trust) serves as
trustee of the Plan. Chase Manhattan Bank, N.A. served
as Trustee of the Plan for 1995.
Contributions
Each year, the sponsor may contribute such amount as its
Board of Directors shall, at its discretion, determine.
Employees may contribute to the Plan a percentage of
their compensation or a fixed dollar amount each pay
period. In addition, the employer makes a matching
contribution based on participants' tax deferred
contributions.
Participant Accounts
Each participant's account is credited with an allocation
of: (1) his or her tax deferred contribution, (2) the
company's contributions, (3) Plan earnings, and (4)
forfeitures of terminated participants' non-vested
accounts. Allocations are based on participant earnings
or account balances, as defined. The benefit to which a
participant is entitled is the benefit that can be
provided from the participant's account.
Vesting
Each participant's interest in his/her employee
contribution account is fully vested at all times. The
Plan provides for vesting in the employer contribution
account of 20% after two years, 40% after three years,
60% after four years, 80% after five years, and 100%
after six years of service.
Page 5
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
Note 1 Description of Plan - Continued
Investment Options
Effective January 1, 1996 and upon enrollment in the Plan, a
participant may direct contributions to the Plan to any
of four investment options.
1) Long-Term Growth - This Portfolio consists of common
stocks, bonds and cash equivalents in an effort to
generate a significant rate of capital growth over time.
2) Growth with Reduced Volatility - This Portfolio
consists of common stocks, bonds and cash equivalents in
an effort to generate a significant rate of capital
growth over time.
3) Stable Income - This Option invests in a pooled
investment trust fund. The Fund is comprised of a
diversified portfolio of GIC's and/or other stable value
investments, such as certificates of deposits. The
objective of this option is to generate a relatively high
rate of interest while protecting against declines in
market value.
4) Company Stock - Effective October 1, 1996,
participants may invest in common stock of Home
Properties of New York.
Participant Notes Receivable
Participants may borrow from their accounts a minimum of
$1,000 to a maximum equal to the lessor of $50,000 or 50%
of their vested account balance. Loan transactions are
treated as a transfer to (from) the investment fund from
(to) the Participant Notes Fund. Loan terms range from
one to five years or longer for the purchase of a primary
residence. The loans are secured by the balance in the
participant's account and bear interest at the prime rate
plus one percent (1%) in effect on the first day of the
month in which the loan is made. Interest rates range
from 7% to 10% for the current outstanding notes.
Principal and interest are paid ratably through weekly or
semi-monthly payroll deductions.
Payment of Benefits
The Plan provides for normal retirement benefits upon
reaching age 65 and has provisions for early retirement,
disability, death and termination benefits for those
participants who are eligible to receive such benefits.
On termination of service, a participant may elect to
receive:
(1) A lump sum amount equal to the value of his or her
account, or
(2) Annual installments over a period of time not to
exceed 15 years.
Page 6
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
Note 1 Description of Plan - Continued
Plan Termination
Although they have not expressed an intent to do so, the
Companies have the right under the Plan to discontinue
contributions at any time and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan
termination, participants will become 100% vested in
their accounts.
Tax Status
In October, 1993, the Companies adopted a prototype plan
which received a favorable determination letter from the
Internal Revenue Service in April, 1993 stating that the
Plan qualifies under the applicable provisions of the
Internal Revenue Code, including Section 401(k).
Note 2 Significant Accounting Policies
Method of Accounting
The financial statements of the Plan are prepared under
the accrual method of accounting.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares
of registered investment companies are valued at quoted
market prices which represent the net asset value of
shares held by the Plan at year-end. The Company stock
is valued at its quoted market price. Participant notes
receivable are valued at cost which approximates fair
value.
Purchases and sales of securities are recorded on a
settlement-date basis. Interest income is recorded on
the accrual basis. Dividends are recorded on the ex-
dividend date.
Payment of Benefits
Benefits are recorded when paid.
Management Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the
date of the financial statements and revenues and
expenses during the reporting period. Actual results
could differ from those estimates.
Administration Expenses
The Company absorbs significant administrative costs of
the Plan.
Page 7
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
Note 3 Investments
The Plan's investments were held by State Street Bank and
Trust Co. in 1996 and Chase Manhattan Bank, N.A. in 1995.
The following table represents the fair market values of
the investments. Investments representing 5% or more of
the Plan's net assets are separately identified.
<TABLE>
<CAPTION>
1996 1995
---------------------- ----------------------
Number of Number of
Investments at Fair Value Shares or Shares or
as Determined by Quoted Principal Fair Principal Fair
Market Price Amount Value Amount Value
- ------------------------- --------- ------- --------- ---------
<S> <C> <C> <C> <C>
Money Market Funds - $ 21,337 - $ 21,634
-------- --------
State St. Principal 184,934 184,934 - -
Preservation Fund -------- --------
U.S. Government Securities
U.S. Treasury Note, 7.250%,
due 8/15/22 170,000 179,828 - -
Other Treasury Notes - 229,605 - -
-------- --------
409,433 -
-------- --------
Collective Investment
Trust Guaranteed
Investment Fund - - 58,141 948,280
-------- --------
Common Stocks - 268,667 - -
-------- --------
Total Investments at Fair Value $884,371 $969,914
======== ========
</TABLE>
Page 8
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
Note 3 Investments - Continued
During 1996 and 1995, the Plan's investments (including
investments bought, sold and held during the year)
appreciated in value as follows:
<TABLE>
<CAPTION>
1996 1995
------- -------
Net Appreciation in Fair Value
- ------------------------------
<S> <C> <C>
Long-Term Gain Fund $36,488 $ -
Growth with Reduced Volatility 2,346 -
Stable Income Fund - -
Company Stock 3,838 -
Guaranteed Investment Fund - 48,463
------- -------
Net Appreciation $42,672 $48,463
======= =======
</TABLE>
Page 9
<PAGE>
INDEPENDENT AUDITORS' REPORT ON THE SUPPLEMENTARY INFORMATION
To the Board of Trustees of
Home Properties of New York, L.P.
Retirement Savings Plan
Rochester, New York
Our audits were made for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplementary
schedules of assets held for investment purposes and reportable
5% transactions as of or for the year ended December 31, 1996,
are presented for the purpose of additional analysis and are not
a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's
Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The
supplemental schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Respectfully Submitted,
/s/ Cortland L. Brovitz & Co., P.C.
Cortland L. Brovitz & Co., P.C.
Certified Public Accountants
Rochester, New York
April 29, 1997
Page 10
<PAGE>
<TABLE>
<CAPTION>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
SCHEDULE OF NET ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
Shares or Description of Current
Face Value Identity of Issue Investment Cost Value
<S> <C> <C> <C> <C> <C>
Cash Management Funds
21,337.04 SSGA Funds - U.S. Treasury
M.M. Interest-bearing cash $ 21,337 $ 21,337
184,933.87 State St Principal
Preservation Fund Interest-bearing cash 184,934 184,934
U.S. Government Securities
40,000 U.S. Treasury Note 5.375%, Due 11/30/97 40,225 39,800
15,000 U.S. Treasury Note 5.875%, Due 10/31/98 15,048 14,981
55,000 U.S. Treasury Note 5.625%, Due 11/30/00 55,645 54,003
5,000 U.S. Treasury Note 6.250%, Due 04/30/01 4,927 5,010
20,000 U.S. Treasury Note 6.625%, Due 07/31/01 20,129 20,319
30,000 U.S. Treasury Note 6.375%, Due 09/30/01 30,094 30,169
20,000 U.S. Treasury Note 6.250%, Due 10/31/01 20,149 20,013
45,000 U.S. Treasury Note 6.500%, Due 08/15/05 47,770 45,310
170,000 U.S. Treasury Note 7.250%, Due 08/15/22 180,722 179,828
414,709 409,433
Corporate Stocks
50 Alliance Pharmaceutical Common Equity 669 681
275 Eastman Kodak Common Equity 19,861 22,069
350 Enersis SA Sponsored ADR Common Equity 10,449 9,713
175 Fabri Ctrs Amer Inc
Cl A Common Equity 2,494 2,822
250 Fabri Ctrs Amer Inc
Cl B Common Equity 3,233 3,844
375 Federal Express Corp Common Equity 15,223 16,687
800 Fingerhut Corp Common Equity 10,943 9,800
200 Fort Howard Corp Common Equity 5,396 5,538
375 Hancock Fabrics Common Equity 3,593 3,891
200 Home Depot Common Equity 9,470 10,025
1,667 Home Properties Common Equity 33,669 37,507
50 Intel Corp Common Equity 2,846 6,547
125 Jacobs Eng Group Inc Common Equity 3,055 3,544
50 Kimberly Clark Common Equity 3,629 4,762
</TABLE>
(Continued)
Page 11
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
<TABLE>
<CAPTION>
SCHEDULE OF NET ASSETS HELD FOR INVESTMENT PURPOSES - CONTINUED
DECEMBER 31, 1996
Shares or Description of Current
Face Value Identity of Issue Investment Cost Value
<S> <C> <C> <C> <C>
Corporate Stocks - Continued
425 McDonalds Common Equity 19,298 19,284
861 MedPartners Common Equity 16,462 17,866
175 Motorola Common Equity 9,485 10,719
625 Nellcor Common Equity 13,876 13,672
200 Office Depot Common Equity 2,760 3,575
325 Stet Soc Finanz Telef
SP ADR Common Equity 11,123 14,422
350 Tandy Corp Common Equity 15,755 15,400
100 Telefonica De Espana
SA ADR Common Equity 5,607 6,925
150 Texas Instruments Inc Common Equity 6,948 9,562
200 V F Corp Common Equity 10,020 13,500
250 YPF Sociedad Anonima
Inc ADR Common Equity 5,310 6,312
241,174 268,667
Participant Loans
Participant Loans Interest ranging from
7.0% to 10.0%,
Due From February,
1997 Through October
2006. Collateralized by
remaining balance of
participant's account. - 48,755
Total Assets Held for Investment Purposes $862,154 $933,126
</TABLE>
Page 12
<PAGE>
HOME PROPERTIES OF NEW YORK, L.P.
RETIREMENT SAVINGS PLAN
ROCHESTER, NEW YORK
<TABLE>
<CAPTION>
SCHEDULE OF REPORTABLE 5% TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
COMPUTED ON JANUARY 1, 1996 VALUE OF $1,115,757
Purchase Selling Gain (Loss)
Description Units Price Price Cost on Sale
- ----------- ----- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Collective Investment Trust
Guaranteed Investment
Fund 58,141 $ - $948,280 $806,326 $141,954
Goldman Sachs Financial
Square Prime Obligations
Money Market 959,674 959,674 - - -
Goldman Sach Financial Square
Prime Obligations Money
Market 977,318 - 977,318 977,318 -
State Street Principal
Preservation Fund 237,326 237,326 - - -
State Street Principal
Preservation Fund 52,393 - 52,393 52,393 -
U.S. Treasury Note, 5.375%,
due 11/30/97 190,000 191,069 - - -
U.S. Treasury Note, 5.375%,
due 11/30/97 150,000 - 149,095 150,844 (1,749)
U.S. Treasury Note, 5.625%,
due 11/30/00 90,000 91,055 - - -
U.S. Treasury Note, 5.625%,
due 11/30/00 35,000 - 33,978 35,410 (1,432)
U.S. Treasury Note, 7.25%,
due 8/15/22 170,000 180,723 - - -
</TABLE>
Page 13
<PAGE>
Exhibit 99-2
ROCHESTER, NEW YORK 14604
716-454-6996
FAX 716-454-4024
----------------
MEMBER
The McGLADREY Network
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration
Statement on Form S-8 to be filed by Home Properties of New York,
Inc. with respect to the Home Properties Retirement Savings Plan
of our report dated April 29, 1997, with respect to the financial
statements and schedules of the Home Properties Retirement
Savings Plan included in this Annual Report (Form 11-K) for the
year ended December 31, 1996.
Sincerely,
/s/ Cortland L. Brovitz & Co., P.C.
-----------------------------------
Cortland L. Brovitz & Co., P.C.
Certified Public Accounts
Rochester, New York
June 25, 1997
