Property Update (04/13/2026):

We are issuing a proactive owner communication to keep update cadence consistent.

Property operations and file review are in progress.

A fuller operational/financial update will follow after manager file reconciliation.

Property Update (04/06/2026):

Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx):

Yhome Net Due TO DAO: $0.00

Lofty Operating Cash: $-8,964.92

ECO Operating Cash: $-916.86

Outstanding Liabilities (Unpaid Bills): $0.00

DAO Net Cash (Capital Call): $-19,191.01

Estimated Owners' Equity: $70,500.00

DAO Estimated NAV Per Token: $20.52

DAO Tokens: 2501

Current PM: ECO (Selling)

Property Update (03/11/2026):

This property received an insurance refund check of $799.01, which will be added to its Operating Reserve.

Property Update (01/06/2026):

This property received an insurance refund check of $1,065.72, which will be added to its Operating Reserve.

Property Update (12/02/2025):

Governance Results for 10724 Gooding Ave:

The Governance Voting results are back for the owner-proposed vote.

The winning vote is:

Approve borrowing a $5,000 bridge loan from the ULD (recommended)

This option received 1,089 / 1,110 token votes, which is equal to 98% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3350355531

Property Update (11/25/2025):

Owner-Proposed Governance Vote for 10724 Gooding Ave:

The property manager, ECO Systems LLC with the following wallet address, is proposing a governance vote.

This owner holds 1 token in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

Property: 10724 Gooding Ave, Cleveland, OH 44108 (LFTY0131) Proposal Date: November 24, 2025 Supermajority Required: 60% Proposal Summary The DAO is in critical financial distress (net cash –$10,592, unpaid taxes, insurance, and vendor bills) and has already voted 98% on October 7, 2025 to list the property for sale. To facilitate an orderly sale process and avoid immediate tax liens or insurance lapse, the DAO requires a bridge loan of net $5,000.00 from the Universal Lending DAO to settle urgent obligations (insurance $749.10 + PM debt to Earl Co $3,988.93 + minor contingencies). Proposed Loan Terms Principal (net to DAO): $5,000.00 Origination Fee: 3% ($150.00) Total Loan Amount: $5,150.00 Interest Rate: 13.5% per annum, compounded monthly Term: 3 years Early Call / Liquidation Trigger: If any scheduled payment is missed during the first 18 months (50% of term), the ULD may immediately call the full balance and exercise first-lien rights to force liquidation/sale. Repayment Priority: 100% of net rental income (if any) applied to the loan until fully repaid; OR replenishment waived due to sale mandate. Voting Options Option A – Approve borrowing a $5,000 bridge loan from the ULD (recommended) Option B – Decline the loan (property risks tax lien, insurance cancellation, and accelerated forced sale at lower value) Rationale for Approval This short-term, high-priority bridge loan aligns with the DAO’s existing 98% mandate to sell, clears immediate liabilities, protects asset value during marketing, Thank you,

Earl Co

Manager, ECO Systems LLC

Member, Lofty Holding 10724 Gooding Avenue DAO LLC

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, December 2nd, once the voting period ends.

Property Update (11/25/2025):

Owner-Proposed Governance Vote for 10724 Gooding Ave:

The property manager, ECO Systems LLC with the following wallet address, is proposing a governance vote.

This owner holds 1 token in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

Property: 10724 Gooding Ave, Cleveland, OH 44108 (LFTY0131) Proposal Date: November 24, 2025 Supermajority Required: 60% Proposal Summary The DAO is in critical financial distress (net cash -$10,592, unpaid taxes, insurance, and vendor bills) and has already voted 98% on October 7, 2025 to list the property for sale. To facilitate an orderly sale process and avoid immediate tax liens or insurance lapse, the DAO requires a bridge loan of net $5,000.00 from the Universal Lending DAO to settle urgent obligations (insurance $749.10 + PM debt to Earl Co $3,988.93 + minor contingencies). Proposed Loan Terms Principal (net to DAO): $5,000.00 Origination Fee: 3% ($150.00) Total Loan Amount: $5,150.00 Interest Rate: 13.5% per annum, compounded monthly Term: 3 years Early Call / Liquidation Trigger: If any scheduled payment is missed during the first 18 months (50% of term), the ULD may immediately call the full balance and exercise first-lien rights to force liquidation/sale. Repayment Priority: 100% of net rental income (if any) applied to the loan until fully repaid; OR replenishment waived due to sale mandate. Voting Options Option A - Approve borrowing a $5,000 bridge loan from the ULD (recommended) Option B - Decline the loan (property risks tax lien, insurance cancellation, and accelerated forced sale at lower value) Rationale for Approval This short-term, high-priority bridge loan aligns with the DAO's existing 98% mandate to sell, clears immediate liabilities, protects asset value during marketing, Thank you,

Earl Co

Manager, ECO Systems LLC

Member, Lofty Holding 10724 Gooding Avenue DAO LLC

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, December 2nd, once the voting period ends.

Property Update (10/07/2025):

Governance Results for 10724 Gooding Ave:

The Governance Voting results are back for the owner-proposed vote.

The winning vote is:

Yes, list for sale

This option received 772 / 784 token votes, which is equal to 98% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3248336800

Property Update (10/01/2025):

Owner-Proposed Governance Vote for 10724 Gooding Ave:

An owner with the following wallet address is proposing a governance vote.

This owner holds 142 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

My Wallet Address: QDTN5SITNPO4AMXPTOAFJDE2NSOHGKQE4LUHD2MUEWBJKHEPAHYEYBO6VM

I am recommending we list this property for sale as the financials put us very far away from cash flowing:

Vote:

List Property for sale?

1. Yes

2. No

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, October 7th, once the voting period ends.

Property Update (10/01/2025):

Owner-Proposed Governance Vote for 10724 Gooding Ave:

An owner with the following wallet address is proposing a governance vote.

This owner holds 142 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

My Wallet Address: QDTN5SITNPO4AMXPTOAFJDE2NSOHGKQE4LUHD2MUEWBJKHEPAHYEYBO6VM

I am recommending we list this property for sale as the financials put us very far away from cash flowing:

Vote:

List Property for sale?

1. Yes

2. No

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, October 7th, once the voting period ends.

Property Update (07/14/2025):

The owner-elected Property Manager, ECO Systems LLC, has provided the following update:

Unpaid Taxes: $2,702.99

Insurance Paid and Due to Lofty: $1265.48

Unpaid Bills Due to Evernest/Lofty: $7,883.75

DAO Net Cash: -$10,592.53

Tenant Status: Unknown

Financial Status: Unknown

Evernest has confirmed this property has not been under their management for over four months.

The previous PM, Yhome Nursing LLC, has not yet provided any information regarding this property. It was never previously under Aligned as anticipated.

Full transaction history has been requested from both Evernest and Yhome.

Property Update (05/12/2025):

Governance Results for 10724 Gooding Ave:

The Governance Voting results are back for the owner-proposed vote to change property managers.

The winning vote is:

Vote to change to ECO Systems property management

This option received 685 / 685 token votes, which is equal to 100% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2990307462

Property Update (05/06/2025):

Owner-Proposed Governance Vote for 10724 Gooding Ave:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 69 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

Short story:

Please vote now to switch to ECO Systems, a proven property manager.

Longer story:

We have wisely voted to stop using our current property manager (Yhome) after they tried to impose onerous new terms on us -- but we have not yet voted on a new property manager, and now must do so.

I propose we transition management of 10724 Gooding Ave to ECO Systems, effective May 15th. ECO Systems’ owner has been a dedicated and loyal member of Lofty for the past four years, consistently demonstrating his ability to manage some of the platform’s best-performing properties, in terms of both income and appreciation (e.g., 86, 88 and 90 Madison Ave).

ECO Systems is an active participant on Lofty and in the Lofty Discord (@earlvanze), offering consistent communication and being readily available to answer any questions from investors, unlike Yhome. ECO Systems’ management fees are 10% of gross rent, first month rent to place a tenant. No fees for re-lease and no maintenance upcharge.

Option 1: Vote to change to ECO Systems property management.

Option 2: Do not change to ECO Systems property management and leave 10724 Gooding Ave with no property manager for now.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, May 12th, once the voting period ends.

Property Update (05/06/2025):

Owner-Proposed Governance Vote for 10724 Gooding Ave:

An Owner with the following wallet address is proposing a governance vote.

This owner holds 69 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

Short story:

Please vote now to switch to ECO Systems, a proven property manager.

Longer story:

We have wisely voted to stop using our current property manager (Yhome) after they tried to impose onerous new terms on us -- but we have not yet voted on a new property manager, and now must do so.

I propose we transition management of 10724 Gooding Ave to ECO Systems, effective May 15th. ECO Systems' owner has been a dedicated and loyal member of Lofty for the past four years, consistently demonstrating his ability to manage some of the platform's best-performing properties, in terms of both income and appreciation (e.g., 86, 88 and 90 Madison Ave).

ECO Systems is an active participant on Lofty and in the Lofty Discord (@earlvanze), offering consistent communication and being readily available to answer any questions from investors, unlike Yhome. ECO Systems' management fees are 10% of gross rent, first month rent to place a tenant. No fees for re-lease and no maintenance upcharge.

Option 1: Vote to change to ECO Systems property management.

Option 2: Do not change to ECO Systems property management and leave 10724 Gooding Ave with no property manager for now.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, May 12th, once the voting period ends.

Property Update (03/15/2025):

Lower Unit:

The property is in the process of transferring management to Yhome Nursing LLC, per the results of the previous governance vote.

Note from the previous property manager, Evernest:

"We did get an initial reply from the tenant's caseworker noting that we will be receiving funds for March on time. The release of other funds will be confirmed soon. Our team will continue to follow up to see if this will be another March release or if funds will be released in April. The caseworker did mention that the abatement period started but we have not been advised of the exact dates."

As of 3/7/25, the tenant has a past due subsidy balance of $2,460.

Property Update (02/21/2025):

Governance Results:

The Governance Voting results are back for the vote to change property managers to Yhome Nursing LLC.

The winning vote is:

Yes - Change property managers to Yhome Nursing LLC

This voting option received 370 / 588 token votes which is equal to 62.9% of the votes.

The voting results can be found on chain here or by searching the application ID: 2788352785

The Yhome Property Management agreement can be viewed here.

Property Update (02/17/2025):

Governance Vote:

An owner with the following wallet address has proposed a governance vote.

The owner proposing this vote holds 69 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.

So that we can become cash-flowing again, I would like to propose that we ask Yhome to manage this property going forward, as they have a much better recent track record of success finding and keeping rent-paying tenants, handling proactive maintenance, etc.

The Yhome Property Management agreement can be viewed here.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Friday, February 21st once the voting period ends.

Property Update (02/17/2025):

Governance Vote:

An owner with the following wallet address has proposed a governance vote.

The owner proposing this vote holds 69 tokens in this property.

The owner's reasoning is below, word-for-word:

*Because this is an owner proposed vote, Lofty cannot change the content. It's up to owners to verify the accuracy of the claims below.

So that we can become cash-flowing again, I would like to propose that we ask Yhome to manage this property going forward, as they have a much better recent track record of success finding and keeping rent-paying tenants, handling proactive maintenance, etc.

The Yhome Property Management agreement can be viewed here.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Friday, February 21st once the voting period ends.

Property Update (02/16/2025):

Upper Unit:

With the addition of February's rent, the tenant now owes an unpaid rent balance of $1,370.

The property manager confirmed that a commitment date has not yet been received from the tenant.

If a payment plan is not finalized this week, they will proceed with posting a demand notice to initiate the eviction process.

Lower Unit:

The property manager confirmed that the reinspection was completed as scheduled on 2/6/25, but they have not yet received the report from the housing authority.

Additionally, the tenant has not received any updates from the housing authority.

The property manager will continue to follow up until the report is received.

With the addition of February's rent, the tenant now has a past due subsidy balance of $1,863.

Property Update (01/11/2025):

Upper Unit:

The tenant owes an unpaid rent balance of $685.

The property manager reported that they have been attempting to contact the tenant regarding their unpaid rent balance, given the tenant's prior history of timely payments.

However, the tenant has not responded to these communication efforts.

The property manager confirmed that a 3-day demand notice was posted at the end of last week.

Property Update (01/11/2025):

Lower Unit:

With the addition of January's rent, the tenant has a past due subsidy balance of $1,266.

The third vendor has been unable to successfully schedule an appointment with the tenant.

The property manager has also attempted to contact the tenant to arrange the appointment; however, the tenant has been unresponsive.

The property manager noted that if the tenant remains unresponsive, they will be informed via email that should the property fail the reinspection, they will still be held responsible for rent due to denying access to the vendor.

The PM provided a new update:

"Our Resident Communications team was notified by the tenant that "repairs were completed". We have followed up with the tenant to get specific details on this claim and we are still awaiting a response. We have requested photos for each of the items in the Section 8 inspection report that the tenant claims were addressed.

I have a call scheduled with the inspections dept to advise them that our vendor has been delayed in going out to the property as the tenant has not scheduled a work visit with them but has, however, claimed that the work was completed. As this is not something we can confirm, the vendor is still on stand-by pending confirmation on a date and time to enter the property.

I will share further updates once I get in touch with the city and hear back from the tenant"

The property manager previously provided two estimate for the needed repairs.

Estimate 1: Brookhaven - $5,057.63

Estimate 2: Galaxy - $3,683.06

Property Update (12/22/2024):

Lower Unit:

The tenant has a past due subsidy balance of $633 due to the unit failing the Section 8 inspection.

The property manager noted that repairs are needed in order for the unit to pass the Section 8 reinspection.

The property manager has provided two estimate for the needed repairs.

Estimate 1: Brookhaven - $5,057.63

Estimate 2: Galaxy - $3,683.06

The property manager noted that the Section 8 reinspection is scheduled to take place on 1/13/24 and recommends to proceed with the estimate from Galaxy.

The PM is working to obtain a third estimate.

Property Update (11/02/2024):

Lower Unit:

The tenant reported there is water leaking into the kitchen from upstairs.

The property manager sent two vendors to assess the situation and the following estimates have been received.

Estimate 1: Stellar Property Care: Includes two estimates which both must be approved.

$1,340 - snaking out tub, pipe work, new faucet, new shut off, replace shower valve.

$1,500 - Water heater replacement

Estimate 2: Ramos Handyman Service:

$2,030 - includes replacing the water heater, snaking the tub, replacing the shower valve, and replacing a ceiling tile from the leak.

The property manager recommends to proceed with Ramo's estimate, and confirmed the repairs have now been completed.

Property Update (09/14/2024):

Upper Unit:

The property manager confirmed the tenant moved in on 9/10 as scheduled.

The tenant signed a 12-month lease at $685/mo.

The tenant paid a pro-rated amount of $479.50.

The tenant paid a security deposit of $1,370.

The lease term is 09/10/2024 - 09/09/2025.

The leasing fee is $350 and will be paid with September's rent.

The tenant is responsible for all utilities.

Lease Agreement

Property Update (08/31/2024):

Upper Unit:

A new tenant has been approved and will move in on 09/10/2024.

The tenant signed a 12-month lease at $685/mo.

The tenant will pay a pro-rated amount of $479.5 a minimum of one business day before the starting date of the lease.

The tenant will pay a security deposit of $1,370.

The lease term is 09/10/2024 - 09/09/2025.

The leasing fee is $350 and will be paid with September's rent.

The tenant will be responsible for all utilities.

The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.

Property Update (08/03/2024):

Upper Unit:

The unit has had 8 showings and 0 applications in the last 7 days.

The PM has slightly reduced the rent to $685.

Unit Listing

Property Update (08/03/2024):

Upper Unit:

The unit had 2 showings and 0 applications in the last 7 days.

The PM has reduced the rent to $725.

Unit Listing

Property Update (07/27/2024):

Upper Unit:

The unit has had 3 showings and 0 applications in the last 7 days.

The PM reduced the rent to $750, going down by $25 as to not land too far apart from the other leased unit.

The PM noted that the prospects from the showings stated that the area is not a good area and they felt unsafe.

Unit Listing

Property Update (07/21/2024):

Upper Unit:

The PM confirmed the unit was delisted and relisted for rent to allow for the listing to reset.

In the last 14 days, the unit has had 2 showings and 0 applications.

The unit is currently listed for rent at $775 with a leasing special of 1/2 off the first months rent.

Unit Listing

Property Update (05/18/2024):

The PM advised that the property required a new railing to be installed for $350 before the unit could be listed for rent.

The PM confirmed the railing was installed, and the unit was listed for rent on 5/9 at $1,000/month.

The unit had no showings since listing, so the PM reduced the rent to $950.

The PM will obtain better photos of the unit and add them to the listing.

Unit Listing

Property Update (05/18/2024):

Upper Unit:

The unit has had 1 showing and 0 pending applications in the last 14 days.

The PM recommends de-listing and re-listing the unit to let the listing reset.

The PM noted that the unit is priced below the area average and the upstairs unit is at $950/month.

The property is currently listed at $800, with a leasing special of 1 month free with a signed lease.

Unit Listing

Lower Unit:

The PM confirmed the tenant has now decided to stay.

The tenant signed a month-to-month MTM lease renewal at $950 valid from 07/01/2024 - 07/01/2025.

Section 8 - $633.00

Rent - $267.00

MTM mark-up - $50.00

The tenant will be responsible for all utilities.

The lease agreement is currently being redacted and will be uploaded to the property's Dropbox folder once the redaction is complete.

Property Update (04/13/2024):

Upper Unit:

The vendor advised that the repairs have been completed.

The QC inspection is scheduled to take place on 4/15.

If there are no call-back items, the unit will be listed for rent.

Lower Unit:

The PM confirmed three past-due Section 8 rent payments, for Nov - Jan, were received on 4/5, totaling $540.

The PM advised that April's rent has also been paid in full by both Section 8 and the tenant.

Property Update (03/23/2024):

Upper Unit:

The PM advised that they had multiple issues with the previous vendor, and the final turn repairs have now been assigned to a new vendor.

The new vendor provided an estimated completion date (ECD) of 3/29.

Once the repairs are completed, the PM will complete a QC inspection and the unit will be listed for rent if there are no call-back items.

Lower Unit:

The PM confirmed March's rent has been received from the tenant and the Housing Authority, however the Housing Authority still owes a subsidy balance of $540.

The PM will continue following up with CMHA regarding the missing payments from November through January.

The tenant provided their official notice to vacate (NTV) at the end of their lease.

The intended move-out date set for 06/24/2024.

The tenant shared their reason for moving is because they are moving out of state.

Once the tenant has vacated the property, the PM will complete a move-out inspection and provide an estimate for any needed turn repairs.

The tenant paid a security deposit of $815.

Property Update (03/09/2024):

Upper Unit:

The PM confirmed an estimated completion date (ECD) of 3/15 has been received from the vendor for the turn repairs.

The PM will continuing following up with the vendor to track the progress.

Once the turn repairs are completed, the PM will perform a QC inspection and the unit will be listed for rent if there are no call-back items.

Property Update (03/02/2024):

Upper Unit:

The PM advised that the turn repairs were further delayed due to bad weather, on top of a delay with the particular vendor.

As a result, the turn was assigned to a new vendor, who has started on the repairs and will provide an estimated completion date (ECD) asap.

Lower Unit:

The PM confirmed that the Housing Authority (CMHA) submitted February's rent payment of $180 on 2/21.

CMHA now owes a past due subsidy balance of $540.

The PM will continue following up with CMHA regarding the missing payments from November through January.

Property Update (01/20/2024):

Upper Unit:

The PM confirmed an estimated completion date (ECD) for the turn repairs has not yet been received.

The PM noted that the bad weather has delayed their vendors as of late, however they should receive an ECD next week.

Property Update (01/13/2024):

Upper Unit:

The PM's maintenance manager was able to reduce the total turn repair cost from $5,363.30 to $2,810.20, while still ensuring the property is rentable and will likely pass a city inspection.

The estimate includes an additional 15% discount ($495) from Evernest as a courtesy to investors.

The PM will share the estimated completion date (ECD) once it has been sent over by the vendor.

Revised Repair Invoice

Lower Unit:

CMHA confirmed they received the Change of Management paperwork submission, and the $540 in owed rent is pending.

The PM is following up with CMHA multiple times per week until the payment is received.

Property Update (01/06/2024):

Upper Unit:

The PM is working to revise the estimate for this unit to decrease the cost, and advised the revision should be ready early next week.

Lower Unit:

The tenant submitted a payment for their portion of January's rent.

Evernest is still waiting to receive CMHA's payment for December and January, and will continue following up until the payments have been received.

Property Update (12/23/2023):

Upper Unit:

Evernest walked the property and confirmed the repairs that were supposed to be completed by the previous PM, B2B Realty, were only partially completed. This is currently being investigated further to determine which repairs B2B completed & if payment is required for these repairs.

The PM advised there were significant delays with vendors in Cleveland over the past month, but they eventually received a turn estimate amounting to $5,363.30, which includes a 15% discount from Evernest as a courtesy to owners.

The work includes general punch-list items, professional cleaning, carpet cleaning, gutter installation, door and window replacements, electrical work, blind replacements, paint touch-ups, and other fixes throughout the living spaces.

Repair Estimate

The PM confirmed the maintenance manager is working with the vendor to try and minimize the amount of repairs needed for this unit, due to the low Operating Reserve balance.

Evernest recently assigned a Senior Property Manager to properties on Lofty in order to increase efficiency and performance, which includes completing repairs faster & renting units in less time.

This Senior PM will be the one point of contact, and will manage & assign tasks to other members of the institutional team including turn & listing coordinators.

All properties managed by Evernest are now managed by a single Senior Asset Manager, whose one and only job at Evernest is managing properties on Lofty.

Lower Unit:

CMHA conducted an annual inspection and Evernest confirmed the property passed the inspection.

Evernest is currently waiting to receive CMHA's payment for December, and will continue following up until the payment has been received.

Property Update (09/19/2023):

Owners voted to change Property Managers from B2B Realty to Evernest Institutional Services.

Property Update (09/19/2023):

Upper Unit:

The previous Property Manager, B2B Realty, confirmed the turn repairs will be completed by the end of this week.

The new owner-elected Property Manager, Evernest, will perform a QC inspection once the repairs are completed, and will market the property for rent immediately after.

Property Update (09/02/2023):

Update 1:

CHN Housing has approved a grant of up to $4,500 for lead interim control work.

Key points to note:

Funding Utilization:

If the total project cost is less than $4,500, the remaining balance will go back to the Lead Safe Home Fund to help other property owners.

Owner's Responsibility:

If the project cost exceeds $4,500, the property owner will be responsible for covering the additional amount. Rent Caps:

Landlords accepting more than $2,000 in grant funds must cap future rent increases for existing tenants at 3% per year. This agreement will last for two years after the lead control work is completed.

Next Steps:

A member of the CHN Lead Services Construction Management team will contact the PM for an initial inspection and further steps.

Update 2:

The PM advised that the scrape and paint items on the turn estimates for the Upper Unit are for lead repairs, and would need to be completed by CHN using the funds from the grant.

As a result, the PM advised to accept the least expensive turn estimate, Estimate 3, as the turn repair total is only $4,420.50 ($4,210 + 5% PM mark-up). These turn repairs do not include the lead repairs (scrape & paint items).

The Operating Reserve balance after the repairs are completed is $574.50.

Property Update (08/11/2023):

Upper Unit:

The PM has received a third turn estimate totaling $7,061.25 ($6,725 + 5% markup)

They are currently working to obtain a fourth estimate.

The Operating Reserve balance is $3,890.

The tenant paid a security deposit of $1,000 which will go towards the turn repairs.

The estimate includes the following scope of work:

Bathtub Mold Removal

A new filter for the furnace

Light Fixtures, Bulbs, Vanity Cleaning

Missing & Loose Door Knobs

Damaged Door Frames & Entry Door

Damaged Window & Door Screens

Improperly Installed Light Switches

Mismatched Flooring, Peeling Paint, Torn Tile Flooring

Constantly Running Bathroom Sink

Caulking, Water Damage, & Repairs

Entire Unit Repainting, Wall Holes, Window Frames Issues

Broken Window Blinds

The PM noted this estimate does not include exterior repairs.

Repair Estimate 3

The PM previously received two additional estimates for the turn repairs.

The first repair estimate is $18,690 ($17,800 + 5% PM mark-up).

Repair Estimate 1

The second repair estimate is $7,728 ($7,360 + 5% PM mark-up)

Repair Estimate 2

Move-out Inspection

Move-out Inspection Photos

Property Update (07/15/2023):

Upper Unit: The PM has received two estimates for the turn repairs, and is currently waiting on a third estimate.

The first repair estimate is $18,690 ($17,800 + 5% PM mark-up).

Repair Estimate 1

The second repair estimate is $7,728 ($7,360 + 5% PM mark-up)

Repair Estimate 2

Move-out Inspection

Move-out Inspection Photos

Property Update (06/03/2023):

Upper Unit: The Property Manager confirmed the tenant moved out and the unit is now vacant.

The tenant lost their rental assistance at the beginning of May, and was unable to afford the rent moving forward.

The PM performed a move-out inspection and noted a number or repairs which will need to be made before marketing to a new tenant.

Vendors are currently being solicited for repair estimates.

Move-out Inspection

Move-out Inspection Photos

Property Update (05/25/2023):

Upper Unit: The tenant made promises to move out of the property by 5/15, citing financial constraints that prevented them from affording the rent at the property.

The PM scheduled a move out inspection for 5/16, however the tenant was still occupying the property & canceled the inspection.

The PM has rescheduled the inspection for 5/28.

The tenant has ensured the PM they will be vacating the property by EOM.

The PM is continuing to make demands for May's rent.

The PM recommends to wait on filing for eviction until 5/28, as the tenant has promised to move out by EOM, and filing would be a waste of funds.

Property Update (05/17/2023):

Upper Unit: The tenant has a balance of $1,000 for May's rent.

The tenant was receiving rental assistance from EDEN, which covered the full rental amount of $1,000.

The PM followed up with EDEN on the payment and they informed the PM that the tenant had completed the program.

The tenant is responsible for rent payments as of 5/1/2023.

The PM informed the tenant of this change and the tenant said that they would be moving out at the end of the month.

The PM has made demands for May's rent and is working with the tenant to create a payment plan.

Property Update (04/12/2023):

CMHA clawed back 20 days of March's rent due to the property having 2 failed inspections.

The total rent clawed back by CMHA is $388.

The PM confirmed that tenants would not be responsible for CMHA's portion.

The property recently passed the compliance inspection per the previous update.

Owners will receive March's rent minus $388 starting on April 14th, once March's rent begins being paid out.

Property Update (03/18/2023):

The Lead Clearance Test has been completed at the property.

Lead abatement repairs are required to obtain a Lead Clearance Certificate required by the City for rental properties.

The repairs include: Clean, scrape, and paint 24 windows at a cost of $115 per window. Touch up, scrape, and match the paint color on the porch and stairs (1 unit).

The total estimate for repairs is $4,081.35.

A Lead Grant application can be submitted to CHN Housing Network.

If qualified, the grant will approve up to $12,000 in funds to complete the required repairs.

The Grant Program is currently reviewing Income Verification from a Lofty user to determine if the property receives a lead grant.

Repair Estimate

The Compliance Inspection was completed by CMHA for the Downstairs Unit.

The following items did not meet the requirements of the Housing Quality Standards:

Bathroom Ceiling - repair sagging area due to upstairs leak

Tub/Shower - water does not drain properly

The estimated cost for repairs is $905.10.

The tenant has an outstanding balance of $491, which is the Section 8 portion of the rent that was not paid due to the failed inspection.

The repairs were completed and the re-inspection was completed on 3/7.

The property has passed the inspection.

CMHA has released funds for the unit and the account balance is $0 as of 3/10.

Owners will receive this rent payment via an increase in daily rent in April. This is because, per our previous announcement, daily rent will now be paid out based on the previous month's actual cash flow, instead of the current month's projected cash flow.

Repair Invoice

The tenant reported additional leaks in the Downstairs unit.

The repair estimate includes plumbing repairs that involve temporarily removing the toilet, cutting a floor opening, replacing the toilet elbow, flange, and wax ring, replacing the floor and tile, and re-installing the toilet.

Additionally, the estimate includes snaking the tub drain to clear debris.

The total cost for the repair is $555.45.

Repair Invoice

The Operating Reserve balance after the repairs is $2,659.88.

Property Update (10/05/2022):

The insurance adjuster has approved an additional $2,322 for interior drywall repairs and tree removal

The total payout for these repairs is now $2,902.70.

Property Update (09/28/2022):

An insurance adjuster completed an inspection of the property and approved the claim

The adjuster approved a payout of $589.38 to be applied towards the repair cost of $3,392.50 for the roof leak damages.

Property Update (09/11/2022):

The tenant reported a leak in the upper unit caused by an overgrown tree damaging the roof shingles and flashing on the chimney

Repairs include trimming the tree, removing debris from the roof, replacing the damaged shingles and flashing, and repairing damaged sheetrock, at a cost of $3,392.50

An insurance claim has been opened for this incident, and any recouped funds will be added back to the Maintenance Reserve

The tenant also reported a leak in the ceiling of the lower unit, partly caused by the roof damage in the upper unit

The vendor also found additional leaks in the upstairs bathroom caused by an old plumbing line

Repairs include tightening and resealing the plumbing line and repairing the damaged sheetrock in the bathroom and hallway, at a cost of $1,666.35

These repair costs will also be deducted from the Maintenance Reserve and the sheetrock damages will be included in the insurance claim to try to recoup expenses.