Property Update (05/19/2026):

Governance Results for 8708 Willard Ave:

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

The winning vote is:

Yes [sell shares back at $32/share]

This option received 531/633 votes which is equal to 83.88% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3564635948

Property Update (05/14/2026):

Owner-Proposed Governance Vote for 8708 Willard Ave:

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

This owner holds 230 shares.

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.

Hello Fellow Owners,

I am offering to buy out all other owners of tokens in the property at 8708 Willard Ave, Cleveland, OH, 44102. I have accumulated a sizeable stake in the property thus far, and I believe that I can create a win/win by creating liquidity for everyone through this buyout.

Specifically, I am offering to:

pay off all debt currently associated with the DAO (about $12,500)

pay any and all closing costs associated with the transaction

pay a net amount of $32 per token to all tokenholders (all holders will receive this amount upon redemption), which is a 57% premium over the current token price of $20.36 as of this writing

buy out the property as-is, where-is, with all faults I believe this is a win for the tokenholders for a variety of reasons, including:

the ~$12,500 debt that the DAO owes and is paying off out of rent/NOI will make it impossible or irresponsible to pay out a rental yield to investors for many months or years into the future considering current income levels and factoring in expected routine repairs, etc.

the roof on the property is in bad shape, and will require replacing in the near future at a cost of $15,000+ or so

this transaction will avoid all realtor costs and repair costs normally incurred by the DAO to get the property ready to list and sold on the MLS

Thank you for your consideration.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, May 19th, once the voting period ends.

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 (11/05/2025):

From your PM, ECO Systems, LLC:

Tenant is paid up and current on rents in Hemlane. Property is stable but has ongoing pest issues being resolved. Yield will remain zero until all debts are settled, and a DAO member proposes a new maintenance reserve balance and decides on custody.

DAO Cash by Lofty: $891.89 (not sure if this is net of the $632.63 owed to Evernest after the $6,511 in non-existent repairs was disputed, awaiting verification from Lofty)

EARLDAO Balance Owed: ($11,000) (out of $20,000 initially borrowed)

DAO Cash held by ECO Systems: $413.88

DAO Estimated NAV: $47.74/share

View Complete Financial Reconciliation

Property Update (07/15/2025):

Governance Results for 8708 Willard Ave:

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

The winning vote is:

Option 1 – Approve Revised Payments

This option received 450/550 token votes which is equal to 82% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3120230586

Property Update (07/15/2025):

Governance Results for 8708 Willard Ave:

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

The winning vote is:

Option 1 - Approve Revised Payments

This option received 450/550 token votes which is equal to 82% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3120230586

Property Update (07/12/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.

This owner holds 1 token in this property and has the following wallet address

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.

Dear Fellow Investors,

Here is a summary of the current financial position for 8708 Willard Ave (Parcel #005-29-006), managed by ECO Systems LLC c/o Aligned Properties Group. Please review and vote in the following proposal to determine how the DAO should address the incomplete $6,000 “entire exterior vinyl siding install" expense paid by Yhome Nursing LLC without prior DAO approval. This work was actually completed by Gruzmarg Interiors on 4/21/2025 at a cost of $15,000.

Yhome Transition Reconciliation Balance Sheet

I am available to answer any questions on Discord or via email to ecosystemspm@gmail.com. Thank you for your prompt attention and participation.

Earl Co

Manager, ECO Systems LLC

Member, Lofty Holding 8708 Willard Avenue DAO LLC

1. Background & Occupancy

Expense: $6,000 paid by Yhome on 12/05/2024 for vinyl siding replacement

Context: No governance vote or budget allocation was in place for this work

Impact: As a result, the DAO’s net cash position fell into a –$7,614.22 shortfall; rejecting this charge would restore a small positive balance of +$194.96

Occupancy: 1 of 1 units occupied

2. Operating Reserve Activity

Tax payment (5/27/25): –$1,842.94 (paid by Lofty from OR bank account)

OR draw: –$4,000.00 (loan to EarlDAO)

Accounts payable (Evernest): $7,143.63 (separate liability; not an OR expense)

Resulting OR cash balance: –$7,614.22

3. Major Disbursements

Yhome → Vendors: $15,162.94

Yhome → I&R Realty and Construction via Aligned: $6,000.00 on 12/5/2024 for Install vinyl to entire exterior of house - PHOTOS REVEAL THIS WAS NOT DONE

DAO PM fees accrued to Yhome: $164.69

Yhome Net Due to DAO: $21,327.63

4. Cash & Reserve Balances

Aligned Operating Cash: $1,415.60

Aligned Property Reserve: $0.00

ECO Operating Cash: $126.21

No outstanding unpaid bills in the Aligned account

5. Outstanding Obligations & Capital Calls

Capital Call due to Yhome: $19,732.63

Capital Call due to Lofty and Evernest: $7,614.22

Net Borrowed from EarlDAO: $16,000.00

DAO Net Cash Position (Capital Call Required): –$5,805.05

6. Voting Options (Ranked Choice)

Option 1 – Reject Expense

Vote to reject the incomplete $6,000 vinyl exterior replacement expense. Yhome Nursing LLC will be required to reimburse the DAO’s Operating Reserve in full.

Outcome: DAO Net Cash → $194.96

Option 2 – Negotiate Settlement

Authorize ECO Systems LLC to negotiate a goodwill settlement with Yhome Nursing LLC for partial reimbursement (e.g. 50–75% of the $6,000 cost). Any agreed-upon amount will be reimbursed to the DAO’s Operating Reserve.

Option 3 – Approve Expense

Vote to approve the incomplete $6,000 vinyl exterior replacement expense. Yhome Nursing LLC will be reimbursed in full out of the pre-authorized EARLDAO loan.

Outcome: DAO Net Cash → ($5,805.05)

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 15th, once the voting period ends.

Property Update (07/12/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.

This owner holds 1 token in this property and has the following wallet address

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.

Dear Fellow Investors,

Here is a summary of the current financial position for 8708 Willard Ave (Parcel #005-29-006), managed by ECO Systems LLC ℠Aligned Properties Group. Please review and vote in the following proposal to determine how the DAO should address the incomplete $6,000 "entire exterior vinyl siding install" expense paid by Yhome Nursing LLC without prior DAO approval. This work was actually completed by Gruzmarg Interiors on 4/21/2025 at a cost of $15,000.

Yhome Transition Reconciliation Balance Sheet

I am available to answer any questions on Discord or via email to ecosystemspm@gmail.com. Thank you for your prompt attention and participation.

Earl Co

Manager, ECO Systems LLC

Member, Lofty Holding 8708 Willard Avenue DAO LLC

1. Background & Occupancy

Expense: $6,000 paid by Yhome on 12/05/2024 for vinyl siding replacement

Context: No governance vote or budget allocation was in place for this work

Impact: As a result, the DAO's net cash position fell into a -$7,614.22 shortfall; rejecting this charge would restore a small positive balance of +$194.96

Occupancy: 1 of 1 units occupied

2. Operating Reserve Activity

Tax payment (5/27/25): -$1,842.94 (paid by Lofty from OR bank account)

OR draw: -$4,000.00 (loan to EarlDAO)

Accounts payable (Evernest): $7,143.63 (separate liability; not an OR expense)

Resulting OR cash balance: -$7,614.22

3. Major Disbursements

Yhome → Vendors: $15,162.94

Yhome → I&R Realty and Construction via Aligned: $6,000.00 on 12/5/2024 for Install vinyl to entire exterior of house - PHOTOS REVEAL THIS WAS NOT DONE

DAO PM fees accrued to Yhome: $164.69

Yhome Net Due to DAO: $21,327.63

4. Cash & Reserve Balances

Aligned Operating Cash: $1,415.60

Aligned Property Reserve: $0.00

ECO Operating Cash: $126.21

No outstanding unpaid bills in the Aligned account

5. Outstanding Obligations & Capital Calls

Capital Call due to Yhome: $19,732.63

Capital Call due to Lofty and Evernest: $7,614.22

Net Borrowed from EarlDAO: $16,000.00

DAO Net Cash Position (Capital Call Required): -$5,805.05

6. Voting Options (Ranked Choice)

Option 1 - Reject Expense

Vote to reject the incomplete $6,000 vinyl exterior replacement expense. Yhome Nursing LLC will be required to reimburse the DAO's Operating Reserve in full.

Outcome: DAO Net Cash → $194.96

Option 2 - Negotiate Settlement

Authorize ECO Systems LLC to negotiate a goodwill settlement with Yhome Nursing LLC for partial reimbursement (e.g. 50-75% of the $6,000 cost). Any agreed-upon amount will be reimbursed to the DAO's Operating Reserve.

Option 3 - Approve Expense

Vote to approve the incomplete $6,000 vinyl exterior replacement expense. Yhome Nursing LLC will be reimbursed in full out of the pre-authorized EARLDAO loan.

Outcome: DAO Net Cash → ($5,805.05)

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 15th, once the voting period ends.

Property Update (07/12/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.

This owner holds 0 tokens in this property and has the following wallet address

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.

Governance Proposal Update – Correction to Renovation and Repair Invoices

Important Update to Prior Proposal

After reviewing the photos provided by Cal (dated 10/27/24), additional documents in Dropbox, and Cal’s own statements, it has become clear that the $6,511 for “Turn Renovation” billed by Evernest was never actually completed, yet this was billed in their Owner Statement.

According to the Property Update on 9/21/24:

"The vendor informed the property manager that the repairs will not be completed by 9/20 as previously scheduled. The vendor has provided an updated estimated completion date of 9/28. The property manager has scheduled the final inspection to take place on 9/30."

Further, the $6,000 payment to I&R Realty and Construction on 12/5/24 was for the same scope of work, not for the exterior siding as previously stated. The $8,000 billed for siding was ultimately removed from the scope of work on the I&R estimate after it was sent to Aligned.

Therefore:

Yhome should be reimbursed for the $6,000 payment to I&R Realty and Construction, which was legitimately performed.

Evernest’s $6,511 bill should be disputed and not approved for payment. This restores the DAO’s positive reserve balance once funds are reimbursed to Lofty for tax payments.

The prior vote to approve the $6,511 expense should be retracted.

The DAO’s Net Cash is $705.95 after prior approvals to borrow $20,000 from EARLDAO, less $4,000 lent to EARLDAO.

Summary of Findings

Invoice/Bill

Amount

Status

Evernest “Turn Renovation”

$6,511

Dispute – Not Performed

I&R Realty and Construction Turn Repairs

$6,000

Reimburse Yhome

Updated Voting Options

Option 1 – Approve Revised Payments

Dispute Evernest’s $6,511 invoice and require them to provide definitive proof of work performed on a line-item basis before any payment or reimbursement is approved

Approve reimbursement to Yhome for the $6,000 repairs performed by I&R Realty

Option 2 – Approve All Payments

Approve Evernest’s full estimate and Owner Statement invoice as provided, even without definitely proof of work performed

Next Steps

The prior vote is hereby retracted due to misunderstanding of the invoice documentation.

Please review this updated information and cast a new vote on how to proceed.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 15th, once the voting period ends.

Property Update (07/12/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.

This owner holds 0 tokens in this property and has the following wallet address

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.

Governance Proposal Update - Correction to Renovation and Repair Invoices

Important Update to Prior Proposal

After reviewing the photos provided by Cal (dated 10/27/24), additional documents in Dropbox, and Cal's own statements, it has become clear that the $6,511 for "Turn Renovation" billed by Evernest was never actually completed, yet this was billed in their Owner Statement.

According to the Property Update on 9/21/24:

"The vendor informed the property manager that the repairs will not be completed by 9/20 as previously scheduled. The vendor has provided an updated estimated completion date of 9/28. The property manager has scheduled the final inspection to take place on 9/30."

Further, the $6,000 payment to I&R Realty and Construction on 12/5/24 was for the same scope of work, not for the exterior siding as previously stated. The $8,000 billed for siding was ultimately removed from the scope of work on the I&R estimate after it was sent to Aligned.

Therefore:

Yhome should be reimbursed for the $6,000 payment to I&R Realty and Construction, which was legitimately performed.

Evernest's $6,511 bill should be disputed and not approved for payment. This restores the DAO's positive reserve balance once funds are reimbursed to Lofty for tax payments.

The prior vote to approve the $6,511 expense should be retracted.

The DAO's Net Cash is $705.95 after prior approvals to borrow $20,000 from EARLDAO, less $4,000 lent to EARLDAO.

Summary of Findings

Invoice/Bill

Amount

Status

Evernest "Turn Renovation"

$6,511

Dispute - Not Performed

I&R Realty and Construction Turn Repairs

$6,000

Reimburse Yhome

Updated Voting Options

Option 1 - Approve Revised Payments

Dispute Evernest's $6,511 invoice and require them to provide definitive proof of work performed on a line-item basis before any payment or reimbursement is approved

Approve reimbursement to Yhome for the $6,000 repairs performed by I&R Realty

Option 2 - Approve All Payments

Approve Evernest's full estimate and Owner Statement invoice as provided, even without definitely proof of work performed

Next Steps

The prior vote is hereby retracted due to misunderstanding of the invoice documentation.

Please review this updated information and cast a new vote on how to proceed.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 15th, once the voting period ends.

Property Update (05/27/2025):

Governance Results for 8708 Willard Ave:

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

The first winning vote is:

Capital call of $20,000, backed by EARLDAO. 12% APR, interest-only, 1-year balloon. Non-dilutive. Repaid from rent or eventual sale.

This option was declared the winner in Round 1 with 740 token votes via the Ranked Choice Voting method.

The voting results can be found on chain here or by searching the application ID: 3058324633

The second winning vote is:

Migrate to Hemlane (10% PM Fee)

PM Fee: 10% to ECO Systems only

Leasing Fee: $695 or 50% of first month’s rent, whichever is greater

No markup on Repairs & Maintenance

Self-guided leasing via Hemlane; no rent-ready cost required

Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC) residing in Cuyahoga or an adjacent county

This option received 782 / 913 token votes, which is equal to 85.6% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3058328958

Property Update (05/27/2025):

Governance Results for 8708 Willard Ave:

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

The first winning vote is:

Capital call of $20,000, backed by EARLDAO. 12% APR, interest-only, 1-year balloon. Non-dilutive. Repaid from rent or eventual sale.

This option was declared the winner in Round 1 with 740 token votes via the Ranked Choice Voting method.

The voting results can be found on chain here or by searching the application ID: 3058324633

The second winning vote is:

Migrate to Hemlane (10% PM Fee)

PM Fee: 10% to ECO Systems only

Leasing Fee: $695 or 50% of first month's rent, whichever is greater

No markup on Repairs & Maintenance

Self-guided leasing via Hemlane; no rent-ready cost required

Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC) residing in Cuyahoga or an adjacent county

This option received 782 / 913 token votes, which is equal to 85.6% of the total votes.

The voting results can be found on chain here or by searching the application ID: 3058328958

Property Update (05/27/2025):

Governance Results for 8708 Willard Ave:

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

The winning vote is:

Option 1 - Contribute 100% of Suggested Cash to Lend: Authorize the DAO to contribute its eligible surplus funds to EARLDAO for use as a lending pool, supporting repairs, insurance, and delinquent tax payments for eligible DAOs. 12% APR & 1-year maturity.

This option was declared the winner in Round 3 with 813 token votes via the Ranked Choice Voting method.

The voting results can be found on chain here or by searching the application ID: 3020357835

Property Update (05/23/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.

This owner holds 1 token in this property and has the following wallet address

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.

CAPITAL CALL & PROPERTY MANAGEMENT STRUCTURE

DAO: Lofty Holding 8708 Willard Ave DAO LLC

Submitted By: Earl Co, Manager, ECO Systems LLC

Submission Date: 05/23/2025

Voting Deadline: 05/27/2025

Background

The DAO currently has a net liability of $16,105.41, reflecting unpaid balances to Yhome Nursing LLC and Aligned Properties Group as well as unpaid taxes, partially offset by available cash in the DAO Operating Reserve.

Yhome Nursing LLC: $19,732.63

Aligned Properties: $744.47

DAO Operating Reserve: ($5,337.04)

Taxes Due: $965.35

DAO Net Cash: -$16,105.41

The unpaid taxes must be promptly paid out of the DAO Operating Reserve, leaving the remaining OR balance untouched. Aligned has agreed to be paid out of June rents.

However, a capital call from the Ecosystems Asset Recovery Lending DAO (EARLDAO) is needed to settle outstanding obligations with Yhome. Any funds due to Yhome will be borrowed from and paid out of EARLDAO ONLY and a promissory note will be held by the lenders of EARLDAO. NO additional funds will be disbursed to Yhome at this time until Lofty resolves ongoing legal matters.

VOTE #1 - CAPITAL CALL OPTIONS

Choose one:

Option 1 - Capital call of $20,000, backed by EARLDAO

12% APR, interest-only, 1-year balloon. Non-dilutive. Repaid from rent or eventual sale.

Option 2 - Capital call of $20,000 via issuance of 982 governance tokens at $21/share

Offered pro-rata to DAO members. Dilutive.

Option 3 - Reject proposal

No action taken. DAO continues with negative balance due to outstanding liabilities.

VOTE #2 - PROPERTY MANAGEMENT STRUCTURE

Choose one:

Option 1 - Stay with Aligned (15% PM Fee)

PM Fee: 10% to Aligned + 5% to ECO Systems

Leasing Fee: 1 full month's rent

10% markup on all Repairs & Maintenance

Option 2 - Migrate to Hemlane (10% PM Fee)

PM Fee: 10% to ECO Systems only

Leasing Fee: $695 or 50% of first month's rent, whichever is greater

No markup on Repairs & Maintenance

Self-guided leasing via Hemlane; no rent-ready cost required

Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC) residing in Cuyahoga or an adjacent county

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, May 27th, once the voting period ends.

Property Update (05/23/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

The new owner-elected property manager, Earl Co with ECO Systems LLC, is proposing a governance vote.

This owner holds 1 token in this property and has the following wallet address

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.

CAPITAL CALL & PROPERTY MANAGEMENT STRUCTURE

DAO: Lofty Holding 8708 Willard Ave DAO LLC

Submitted By: Earl Co, Manager, ECO Systems LLC

Submission Date: 05/23/2025

Voting Deadline: 05/27/2025

Background

The DAO currently has a net liability of $16,105.41, reflecting unpaid balances to Yhome Nursing LLC and Aligned Properties Group as well as unpaid taxes, partially offset by available cash in the DAO Operating Reserve.

Yhome Nursing LLC: $19,732.63

Aligned Properties: $744.47

DAO Operating Reserve: ($5,337.04)

Taxes Due: $965.35

DAO Net Cash: -$16,105.41

The unpaid taxes must be promptly paid out of the DAO Operating Reserve, leaving the remaining OR balance untouched. Aligned has agreed to be paid out of June rents.

However, a capital call from the Ecosystems Asset Recovery Lending DAO (EARLDAO) is needed to settle outstanding obligations with Yhome. Any funds due to Yhome will be borrowed from and paid out of EARLDAO ONLY and a promissory note will be held by the lenders of EARLDAO. NO additional funds will be disbursed to Yhome at this time until Lofty resolves ongoing legal matters.

VOTE #1 – CAPITAL CALL OPTIONS

Choose one:

Option 1 – Capital call of $20,000, backed by EARLDAO

12% APR, interest-only, 1-year balloon. Non-dilutive. Repaid from rent or eventual sale.

Option 2 – Capital call of $20,000 via issuance of 982 governance tokens at $21/share

Offered pro-rata to DAO members. Dilutive.

Option 3 – Reject proposal

No action taken. DAO continues with negative balance due to outstanding liabilities.

VOTE #2 – PROPERTY MANAGEMENT STRUCTURE

Choose one:

Option 1 – Stay with Aligned (15% PM Fee)

PM Fee: 10% to Aligned + 5% to ECO Systems

Leasing Fee: 1 full month’s rent

10% markup on all Repairs & Maintenance

Option 2 – Migrate to Hemlane (10% PM Fee)

PM Fee: 10% to ECO Systems only

Leasing Fee: $695 or 50% of first month’s rent, whichever is greater

No markup on Repairs & Maintenance

Self-guided leasing via Hemlane; no rent-ready cost required

Subject to Hemlane's ability to secure a Local Agent in Charge (LAIC) residing in Cuyahoga or an adjacent county

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, May 27th, once the voting period ends.

Property Update (05/21/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

Earl Co with ECO Systems LLC, who has the following wallet address, has proposed a governance vote.

The owner proposing this vote 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.

Subject: Contribution of Surplus Funds to EARLDAO for Lending to DAO LLCs in Need of Short - Term Capital

View Governance Proposal

View Summary

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Tuesday, May 27th once the voting period ends.

Property Update (05/21/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

Earl Co with ECO Systems LLC, who has the following wallet address, has proposed a governance vote.

The owner proposing this vote 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.

Subject: Contribution of Surplus Funds to EARLDAO for Lending to DAO LLCs in Need of Short - Term Capital

View Governance Proposal

View Summary

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to all owners on Tuesday, May 27th once the voting period ends.

Property Update (05/17/2025):

Update from Yhome Nursing LLC (this update is currently being reviewed by the new owner-elected property manager, ECO Systems LLC).

"Over the past few months, Yhome has dedicated significant time and resources to turn around properties under management, and Willard is one of them. The property is now fully renovated, with siding completed, and a tenant in place.

At this point, I am requesting a capital call to compensate Yhome for its services. Please note that no additional fees have been added beyond this amount. Currently, the property is in a transition state.

The owners did vote for a 25% flat rate, but that rate has not been applied. I kindly ask that you proceed with the capital call and pay Yhome for its services.

Thank you."

Documents & photos provided by Yhome

Property Update (05/12/2025):

Governance Results for 8708 Willard 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 and reject Yhome's fee increase.

This option received 1,267 / 1,267 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: 2990297553

Property Update (05/05/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

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

This owner holds 395 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 and avoid an almost doubling of our PM fee to 25% with our current unresponsive property manager (Yhome).

Longer story:

If we take no action in the next two weeks, our current property manager (Yhome)'s fees will almost double to 25%. This is a consequence of Yhome's unilateral change of contract terms, which we (possibly inadvertently) voted to approve in the vote earlier this month, in a confusing vote in which we had no clear option to refuse, and were presented with a menu of terrible options.

I urge you to vote against this by transitioning management of 8708 Willard 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 and reject Yhome's fee increase.

Option 2: Vote to retain Yhome as property manager, and pay a 25% PM fee going forward.

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 (05/05/2025):

Owner-Proposed Governance Vote for 8708 Willard Ave:

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

This owner holds 395 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 and avoid an almost doubling of our PM fee to 25% with our current unresponsive property manager (Yhome).

Longer story:

If we take no action in the next two weeks, our current property manager (Yhome)'s fees will almost double to 25%. This is a consequence of Yhome's unilateral change of contract terms, which we (possibly inadvertently) voted to approve in the vote earlier this month, in a confusing vote in which we had no clear option to refuse, and were presented with a menu of terrible options.

I urge you to vote against this by transitioning management of 8708 Willard 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 and reject Yhome's fee increase.

Option 2: Vote to retain Yhome as property manager, and pay a 25% PM fee going forward.

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 (04/21/2025):

Note from PM:

"The siding for Willard is done.

More details to follow."

Additionally, the property manager shared the attached photos.

Property Update (03/06/2025):

A new tenant has been approved and will move in on 3/21/25.

The tenants signed a 12 month lease at $1,595, a $345 increase over the previous rent.

The lease term is from 3/21/25 - 3/20/26.

The tenant will pay a security deposit of $1,595.

The property manager charges a leasing commission of first month's rent, which will be deducted from March's rent.

The lease agreement is currently being redacted, and will be uploaded to the property page once the redaction is complete.

Property Update (02/20/2025):

The new owner-elected property manager, Yhome Nursing LLC, confirmed the property has been listed for rent at $1,595/month.

Note from PM:

"We are going live with Willard. However, we are not done with the outside. We are waiting for better weather to install the siding. Thank you"

Property Listing

The property manager has shared repair photos & a video for the property:

Photo link

Video Tour

Property Update (11/27/2024):

Governance Results:

The Governance Voting results are back for the owner proposed governance vote to either sell the property or proceed with the turn repairs and forfeit the $4,500 lead grant.

The winning vote is:

Proceed with the turn repairs and rent the property out again

This voting option received 596 / 981 token votes, which is equal to 61% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2544024455

The repairs will commence right away, and an update will be provided once the repairs are completed and the property is ready to be re-listed for rent.

Per the terms of the Yhome Profit First System, when a property is onboarded to Yhome Nursing LLC, owners start receiving 1/12 of the monthly cash flow as daily rent once a tenant moves in and the leasing fee has been paid.

After 90 days of management, during which an inspection is conducted and tenant payment reliability is assessed, owners can vote on the cash flow distribution for the next quarter, also paid as daily rent. Yhome will suggest an amount to set aside for routine maintenance and repairs to ensure property stability. This voting process occurs quarterly.

Properties managed by Yhome do not have traditional Operating Reserves or an Operating Reserve replenishment rate. As a result, owners will begin receiving cash flow as daily rent once the initial 90 day period ends.

Repair costs and unpaid bills will be paid off via a loan from Yhome Nursing LLC at a 6% interest rate, amortized over 15 years.

The following documents will soon be provided:

Amortization calculator

Cash flow model

Cash flow projections

Promissory note

Property Update (11/25/2024):

Governance Vote:

The governance vote results are back for the vote to proceed with the turn repairs and forfeit the $4,500 lead grant.

The winning vote is:

Yes [proceed with the turn repairs and forfeiting the $4,500 lead grant]

This voting option received 891 / 1,049 of the token votes, which is equal to 85% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2537838582.

A separate owner is proposing a governance vote to instead sell the property. Owners will have the opportunity to continue proceeding with the turn repairs, or list the property for sale.

This owner holds 93 tokens in this property and their wallet can be viewed here.

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.

I am seeing that a newly elected manager sends some crazy numbers for repair that will essentially block any revenue from this property for years to come. This property is not in a category that warrants such expenses. So here is my proposal.

"Given that the property is not in a good shape and the proposed very expensive remodeling plans will block any revenue for years I propose to sell it on the open market as is or with minor cosmetic touches."

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Wednesday, November 27th, once the voting period ends.

Property Update (11/25/2024):

Governance Vote:

The governance vote results are back for the vote to proceed with the turn repairs and forfeit the $4,500 lead grant.

The winning vote is:

Yes [proceed with the turn repairs and forfeiting the $4,500 lead grant]

This voting option received 891 / 1,049 of the token votes, which is equal to 85% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2537838582.

A separate owner is proposing a governance vote to instead sell the property. Owners will have the opportunity to continue proceeding with the turn repairs, or list the property for sale.

This owner holds 93 tokens in this property and their wallet can be viewed here.

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.

I am seeing that a newly elected manager sends some crazy numbers for repair that will essentially block any revenue from this property for years to come. This property is not in a category that warrants such expenses. So here is my proposal.

"Given that the property is not in a good shape and the proposed very expensive remodeling plans will block any revenue for years I propose to sell it on the open market as is or with minor cosmetic touches."

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Wednesday, November 27th, once the voting period ends.

Property Update (11/20/2024):

An owner of this property has put together a counter-proposal.

This is in response to the previous governance vote sent out on 11/19, which can be viewed on the property page here.

If you have already voted, and would like to change your vote, click the button below, or at the end of this email.

The owner who proposed the counter-proposal owns 93 tokens in this property, and their wallet can be viewed here.

If owners vote not to proceed with the turn repairs, a separate governance vote will be sent out to list the property for sale.

The owner's counter-proposal 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.

I am seeing that a newly elected manager sends some crazy numbers for repair that will essentially block any revenue from this property for years to come. This property is not in a category that warrants such expenses. So here is my proposal.

"Given that the property is not in a good shape and the proposed very expensive remodeling plans will block any revenue for years I propose to sell it on the open market as is or with minor cosmetic touches."

Property Update (11/20/2024):

An owner of this property has put together a counter-proposal.

This is in response to the previous governance vote sent out on 11/19, which can be viewed on the property page here.

If you have already voted, and would like to change your vote, click the button below, or at the end of this email.

The owner who proposed the counter-proposal owns 93 tokens in this property, and their wallet can be viewed here.

If owners vote not to proceed with the turn repairs, a separate governance vote will be sent out to list the property for sale.

The owner's counter-proposal 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.

I am seeing that a newly elected manager sends some crazy numbers for repair that will essentially block any revenue from this property for years to come. This property is not in a category that warrants such expenses. So here is my proposal.

"Given that the property is not in a good shape and the proposed very expensive remodeling plans will block any revenue for years I propose to sell it on the open market as is or with minor cosmetic touches."

Property Update (11/19/2024):

Governance Vote:

The new owner-elected property manager, Cal with Yhome Nursing LLC, is proposing a governance vote.

Cal personally holds 130 tokens in this property and his wallet can be viewed here.

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.

I have worked diligently to negotiate a more cost-effective, value-enhancing solution that addresses both immediate needs and long-term benefits.

Attached is a revised estimate of $16,500, reduced from the original $21,000. The repairs include replacing the siding with durable, low-maintenance vinyl, an upgrade that eliminates the need for repainting every 2-3 years and delivers substantial savings over time. After further negotiations, the vendor agreed to complete the entire project for $14,000, securing additional savings. For reference, Owners previously received an estimate of $9,901 to repaint the exterior siding alone.

The property was approved for a $4,500 lead repair grant, utilizing this grant requires working exclusively with vendors from an approved network. Unfortunately, this network has been backlogged for over a year with no clear completion timeline. Additionally, moving forward with the repairs independently would result in forfeiting the grant.

The exterior repairs are critical to making the property rent-ready. Its current condition prevents leasing, leading to ongoing rental income losses and potential depreciation in property value. Delaying repairs to wait for the grant also risks further deterioration, increasing future costs and complications.

Proceeding with these essential repairs now is the most practical and cost-effective choice, ensuring the property is preserved, its value enhanced, and its rental income potential restored.

Do you approve proceeding with the turn repairs and forfeiting the $4,500 lead grant?"

The funds to complete the repairs will be provided via a loan from Yhome Nursing LLC with a 6% interest rate amortized over 15 years.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, November 25th, once the voting period ends.

Property Update (11/19/2024):

Governance Vote:

The new owner-elected property manager, Cal with Yhome Nursing LLC, is proposing a governance vote.

Cal personally holds 130 tokens in this property and his wallet can be viewed here.

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.

I have worked diligently to negotiate a more cost-effective, value-enhancing solution that addresses both immediate needs and long-term benefits.

Attached is a revised estimate of $16,500, reduced from the original $21,000. The repairs include replacing the siding with durable, low-maintenance vinyl, an upgrade that eliminates the need for repainting every 2-3 years and delivers substantial savings over time. After further negotiations, the vendor agreed to complete the entire project for $14,000, securing additional savings. For reference, Owners previously received an estimate of $9,901 to repaint the exterior siding alone.

The property was approved for a $4,500 lead repair grant, utilizing this grant requires working exclusively with vendors from an approved network. Unfortunately, this network has been backlogged for over a year with no clear completion timeline. Additionally, moving forward with the repairs independently would result in forfeiting the grant.

The exterior repairs are critical to making the property rent-ready. Its current condition prevents leasing, leading to ongoing rental income losses and potential depreciation in property value. Delaying repairs to wait for the grant also risks further deterioration, increasing future costs and complications.

Proceeding with these essential repairs now is the most practical and cost-effective choice, ensuring the property is preserved, its value enhanced, and its rental income potential restored.

Do you approve proceeding with the turn repairs and forfeiting the $4,500 lead grant?"

The funds to complete the repairs will be provided via a loan from Yhome Nursing LLC with a 6% interest rate amortized over 15 years.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, November 25th, once the voting period ends.

Property Update (10/27/2024):

Calixte Duffaut of Yhome Nursing LLC, the new owner-elected property manager, provided the following update:

"This property was listed for rent as is just like you see in the pictures. We had to ask the previous PM to take the listing down. I am sorry this is not to our standard."

View Photos

Cal will provide new estimates to make the necessary repairs in order to rent the property. New updates will be provided promptly.

Property Update (10/14/2024):

Governance Results:

The Governance Voting results are back for the owner proposed governance vote to migrate the property to Yhome Nursing LLC.

The winning vote is:

Change Property Managers to Yhome Nursing LLC

This voting option received 1,362 / 1,464 token votes, which is equal to 93% of the total votes.

The voting results can be found on chain here or by searching the application ID: 2364782144

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

Per the management terms, there will be no Operating Reserve replenishment for properties managed by Yhome, so owners will begin receiving 100% of the daily rent for this property as soon as positive cash flow comes in.

Any future repairs/expenses that come up will simply be paid for by the existing reserve balance, and any repairs exceeding that balance will be paid for by Yhome + 6% interest. Owners have the ability to propose a vote to pay out all, or a portion, of the current reserve as daily rent.

Property Update (10/12/2024):

The property manager confirmed that the final inspection is complete.

They are now working to schedule an appointment to install the tenant turner box and take marketing photos.

The PM's recommendation is to list the property for rent at $1,570.

The PM advised that they expected the property to be listed for rent by Thursday, 10/10. The property has not yet been listed, and the PM will follow up on the reason for the delay.

Property Update (10/07/2024):

Owner-Proposed Governance Vote:

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

This owner holds 395 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.

I would like to propose that we ask Yhome to manage this property going forward, given their recent superior track record of finding and keeping tenants, and being responsive to owner requests and concerns.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, October 14th, once the voting period ends.

Property Update (10/07/2024):

Owner-Proposed Governance Vote:

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

This owner holds 395 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.

I would like to propose that we ask Yhome to manage this property going forward, given their recent superior track record of finding and keeping tenants, and being responsive to owner requests and concerns.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Monday, October 14th, once the voting period ends.

Property Update (10/06/2024):

The property manager confirmed their tech completed the final inspection as scheduled, however, Evernest's submission portal is currently having issues and is under maintenance.

Their IT team is working to resolve this issue as the impact is companywide.

The property manager will share the inspection report once this issue is resolved.

Owners have the ability to propose a governance vote anytime to migrate the property management to Yhome Nursing LLC.

The Yhome Nursing LLC management terms, provided by the owner, Calixte Duffaut, can be viewed here.

Cal manages 9 other properties in the Cleveland & Akron markets on Lofty, and is the co-owner and Property Manager of the following co-ownership properties on Lofty:

402 N Wild Olive Ave

122 Florida Park Dr

49 Bannbury Ln

27 Pillar Ln

20 Sederholm Path

752 Gelaso St SW

Property Update (09/21/2024):

The vendor informed the property manager that the repairs will not be completed by 9/20 as previously scheduled.

The vendor has provided an updated estimated completion date of 9/28.

The property manager has scheduled the final inspection to take place on 9/30.

Property Update (09/07/2024):

The property manager confirmed the turn repairs are expected to be completed by 9/20.

Property Update (08/24/2024):

The property manager received a third estimate, which amounts to $44,588.32.

The property manager recommends to proceed with the Evernest estimate, totaling $6,511, instead the estimate from Ramos, totaling $5,525.

The property manager noted that the estimate covers safety and habitability items, along with city code requirement items.

The property manager noted that they will work to get this renovation completed in a reasonable and appropriate time and any scope item of concern flagged by their technician will be corrected at no additional cost to the owner.

The property manager will share the start and estimated completion dates once the turn has been scheduled.

The tenant paid a Security Deposit of $1,200 which will go towards the turn repairs.

A Tenant Protection Plan (TPP) claim was filed for lost rent.

The insurance carrier has approved the claim for one month's skip of rents, amounting to $1,000.

Property Update (08/17/2024):

The property manager has provided the second estimate, from Ramos, amounting to $5,525. The PM will share the estimate shortly.

The property manager recommends to proceed with the Evernest estimate amounting to $6,511, however they noted that either estimate will get the home in rent ready condition.

The property manager confirmed they are working to obtain a third estimate.

Property Update (08/10/2024):

The property manager completed the move-out inspection and provided a turn estimate amounting to $6,511.

The property manager confirmed the estimate includes only the repairs needed to make the home safe, habitable, and rent ready.

The PM is in the process of getting a second estimate.

The tenant paid a Security Deposit of $1,200 which will go towards the turn repairs.

A Tenant Protection Plan (TPP) claim was filed for lost rent, and the insurance carrier approved the claim for one month's skip of rents, totaling $1,000.

Property Update (07/27/2024):

The PM confirmed the property is vacant and the tenant dropped the keys off at the office.

The PM is now working to scheduled the move-out inspection and obtain estimates for the needed turn repairs.

The tenant's balance of $3,350.99 will be sent to a collections agency to attempt to recoup the funds.

A tenant protection plan (TPP) claim will be submitted for lost rent.

The tenant paid a Security Deposit of $1,200 which will go towards the turn repairs.

Property Update (07/06/2024):

The PM advised that the tenant has submitted a notice-to-vacate for 7/7.

With the addition of July's rent, the tenant owes an unpaid rent balance of $3,350.99.

The tenant's balance will be sent to a collections agency to attempt to recoup the funds.

A tenant protection plan (TPP) claim will be submitted for lost rent.

Property Update (07/05/2024):

The tenant did not pay their balance in full as previously promised, however they did submit a partial payment of $500 on 6/29.

With the addition of July's rent, the tenant owes an unpaid rent balance of $3,350.99.

The PM recommends to demand the tenant pay the rent in full. If the payment is not submitted in a timely manner, the PM recommends to proceed with a notice-to-vacate as the tenant's lease expired on 6/30 and they are now month-to-month.

A lease renewal has not been offered due to the tenant's unpaid rent balance.

Property Update (06/29/2024):

The property was previously approved for a $4,500 Lead Repair Grant from CHN Housing.

CHN Housing sent the update below regarding the next steps to receive the Lead Grant.

"Thank you for your application to – and your patience with – CHN’s lead safety program.

We have experienced a larger than expected response to our program, creating unfortunate delays. Because of this demand, CHN will be transferring your application file to one of the agencies* listed below. Once an agency is assigned to your file, they will review your information and be in touch with you within the next few weeks.

Please note that there are no changes to grant approvals, program requirements, and guidelines.

Thank you again for doing your part in making Cleveland a lead safe City.

*Famicos, Fairfax, Environmental Health Watch, and Cleveland Neighborhood Progress are all contracted agencies of the Lead Safe Cleveland Coalition to administer lead safe grants."

Property Update (06/29/2024):

The property was previously approved for a $4,500 Lead Repair Grant from CHN Housing.

CHN Housing sent the update below regarding the next steps to receive the Lead Grant.

"Thank you for your application to - and your patience with - CHN's lead safety program.

We have experienced a larger than expected response to our program, creating unfortunate delays. Because of this demand, CHN will be transferring your application file to one of the agencies* listed below. Once an agency is assigned to your file, they will review your information and be in touch with you within the next few weeks.

Please note that there are no changes to grant approvals, program requirements, and guidelines.

Thank you again for doing your part in making Cleveland a lead safe City.

*Famicos, Fairfax, Environmental Health Watch, and Cleveland Neighborhood Progress are all contracted agencies of the Lead Safe Cleveland Coalition to administer lead safe grants."

Property Update (06/15/2024):

The tenant made a partial payment of $500 on 6/14 and now owes a balance of $2,500.

The tenant has promised to pay the remaining balance by 6/30.

Property Update (06/08/2024):

The tenant made a partial payment of $501.98 on 5/31.

With the addition of June's rent, the tenant now owes a balance of $3,000.

The tenant has promised to clear their balance by 6/30.

Property Update (05/25/2024):

The tenant made a payment of $1149.01 on 5/20.

The tenant now owes a balance of $2,150.99.

The PM is continuing to follow up to collect the remainder of the balance, and will follow up with their recommendation on next steps.

Property Update (05/11/2024):

With the addition of May's rent, the tenant owes a past due balance of $3,350.99.

The PM confirmed the tenant did not make a payment as promised.

The PM recommends to proceed with a notice to vacate for the lease end date on 06/30/2024, due to the extended time it is taking for evictions in Cleveland.

Property Update (04/13/2024):

The tenant paid partial rent for March, totaling $701.98.

The tenant has not paid April's rent, and owes a total balance of $2,000.

The tenant promised to pay their balance in full by 4/19.

The PM recommends allowing the tenant to make their payment as promised.

Property Update (03/02/2024):

The PM confirmed the tenant cleared their past due balance of $2,501.98 to $0 on 2/22.

Property Update (02/10/2024):

The PM advised that they have been unable to collect January's rent payment.

With the addition of February's rent, the tenant owes a past due balance of $2,501.98.

The PM recommends to continue efforts to establish a formal payment plan before moving to an eviction.

The PM reported that there are various repairs needed at the property.

The PM has obtained two estimates for the needed repairs.

Estimate 1: $1,550 - Install a screen door to the back door, replace bathroom faucet, scrape/sand/epoxy the tub, foam basement gaps, replace bathtub shower valve.

Estimate 2: $1,670 - Install brink & tuckpoint to close hole in basement wall, replace bathtub faucet and reglaze the tub, replace the broken bathroom sink faucet, and install a screen door on the back.

The PM noted that the biggest difference in the estimates is the basement hole repair.

In Estimate 1, the vendor is using foam to install the gap.

In Estimate 2, the vendor is installing brick and tuck point to close the gaps.

The PM recommends Estimate 2 because they advised the brick will look significantly better.

Property Update (12/22/2023):

The tenant signed a 6 month lease renewal at $1,300, a $50 increase from the previous lease of $1,250.

The new lease term is 01/01/2024 - 6/30/2024.

The lease renewal fee is $325 and will be deducted from December's rent.

The tenant is 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.

The PM has followed up & is continuing to wait for a response from CHN Housing on the approved grant of $4,500 for lead interim control work.

Property Update (10/13/2023):

The tenant submitted the final payment of $1,250 and now has a $0 balance.

Property Update (09/26/2023):

The court hearing took place on 9/14. The tenant owed a balance of $6,002.50.

A payment plan was arranged with the tenant.

A payment of $4,400 was made on 9/18

A payment of $1,400 was made on 9/25

Owners will receive these funds via daily rent starting on October 15th, once September's rent begins being paid out.

Per the court arrangement, the tenant is set to clear their ledger by 10/17 with a final payment of $1,250.

Property Update (09/19/2023):

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

Property Update (09/02/2023):

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.

The PM confirmed the eviction hearing date is scheduled for 9/7.

Property Update (08/20/2023):

Update 1:

The tenant owes a balance of $4,596.40.

The tenant missed the last 3 payments from their payment plan.

The tenants last payment was submitted on 7/12.

The PM confirmed a 3-day notice was posted and the eviction process has been initiated.

Update 2:

The tenant reported mold in the house.

The PM has received three estimates in total.

The tenant took multiple videos which show signs of a leak in the ceiling. The mold is in the bathroom tub and on the floor by the tiled wall, which is a result of the tenant not cleaning the tub properly.

Estimate 1 proposes to spray the affected areas with a bleach solution and then paint over those areas. The total estimate cost is $1,417.50 ($1,350 + 5% PM markup).

Repair Estimate 1

Estimate 2 proposal includes:

Remediate mold in the basement and apply DRYLOK to masonry walls.

Remediate mold in the bathroom and caulk the tub.

Remediate mold in the living room, paint the ceiling, and touch up the walls.

The total estimate cost of repairs is $3,307.50 ($3,150 + 5% PM markup).

Repair Estimate 2

The PM received a third estimate of $2,100 ($2,000 + 5% PM markup).

Repair Estimate 3

The PM recommends the least expensive Estimate 1 ($1,417.50), as it is less expensive & takes care of the issue.

The Operating Reserve balance before the repairs is $4,012.50.

Property Update (07/15/2023):

The tenant missed their $700 payment on 6/28, but made a payment of $700 on 7/12.

The tenant now owes a balance of 3,190.30.

The PM made a new arrangement with the tenants, listed below:

7/26 - $800

8/9 - $800

8/23 - $800

The tenants are elderly and have communicated to the PM they will have their balance paid in full soon.

The PM recommends allowing the tenants to pay per the arrangement, as does the governance survey on how to handle tenant delinquencies.

Property Update (06/20/2023):

The tenant made a payment of $700 on 6/15 as promised.

The tenant now owes a balance of $2,439.91.

Per the payment plan, the tenants next payment is scheduled to be submitted on 6/28.

Payment plan:

6/28 - $700

7/12 - $700

7/26 - $700

8/9 - $700

Property Update (06/01/2023):

The tenant made a payment of $631.50 today.

With the addition of June's rent, the total amount owed has now increased to $3,064.91.

The tenant has a bi-weekly payment arrangement of $600 with PM to resolve the outstanding balance.

Property Update (05/18/2023):

The tenant made a payment of $900 & now owes a balance of $2,380.52.

The tenant has a bi-weekly payment arrangement of $600 with PM to resolve the outstanding balance.

Property Update (05/11/2023):

Governance Vote for 8708 Willard Ave:

A Supermajority of 60%+ was not reached for one of the votes in the previous governance vote.

Because of this, there will be a re-vote using the Ranked Choice Voting method, as there are more than two available options.

The following vote did not reach a Supermajority of 60%+ in the first vote:

Vote: Would you like to temporarily increase the Operating Reserve replenishment rate until the Operating Reserve balance is 100% full?

The results from the original vote are as follows:

Yes. Temporarily increase the replenishment rate from 10% to 50% of cash flow until the Operating Reserve balance is 100% full: 714/1,531 token votes (46.6%)

Yes. Temporarily increase the replenishment rate from 10% to 100% of cash flow until the Operating Reserve balance is 100% full: 635/1,531 token votes (41.5%)

No. Do not increase the replenishment rate: 182/1,531 token votes (11.9%)

The results from the other vote are below:

Vote: Would you like to temporarily increase the maximum Operating Reserve balance (at 100% full) from $5,900 to $10,000?

Winner: Yes, temporarily increase the Operating Reserve balance from $5,900 to $10,000 until lead abatement is completed or lead grant is received.

This option received 1,355 out of 1,555 token votes which is equal to 87.1% of the total votes.

Owners will now have the option to vote on the replenishment reserve rate now that the Operating Reserve balance has been increased from $5,900 to $10,000.

The winning decision will be determined by a Supermajority of 60%+ using the Ranked Choice Voting method and the results will be sent to all investors in 8708 Willard Ave on Monday, May 15th once the voting period ends.

Property Update (05/11/2023):

Governance results for 8708 Willard Ave: The Governance Voting results are back for the vote to increase the maximum Operating Reserve balance from $5,900 to $10,000 along with increasing the replenishment rate from 10% to either 50% or 100% of cash flow until the Operating Reserve reaches a balance of $10,000.

Vote #1: Would you like to temporarily increase the maximum Operating Reserve balance (at 100% full) from $5,900 to $10,000?

Winner: Yes. Temporarily increase the Operating Reserve balance from $5,900 to $10,000 until lead abatement is completed or lead grant is received.

This option received 1,355 out of 1,555 token votes which is equal to 87.1% of the total votes.

Vote #2: Would you like to temporarily increase the Operating Reserve replenishment rate until the Operating Reserve balance is 100% full?

Winner: Yes. Temporarily increase the replenishment rate from 10% to 100% of cash flow until the Operating Reserve balance is 100%.

This option was declared the winner with 1,336 votes in round 3 using the Ranked Choice Voting method.

The 1st round of voting eliminated the following option: Do not increase the replenishment rate - 195 votes

The 2nd round of voting eliminated the following option: Yes. Temporarily increase the replenishment rate from 10% to 50% of cash flow until the Operating Reserve balance is 100% full - 646 votes

The maximum Operating Reserve balance has been increased from $5,900 to $10,000 and the replenishment rate has been increased from 10% to 100% of cash flow until the Operating Reserve balance is 100%.

Property Update (04/28/2023):

The PM advised that the tenant has not applied for rental assistance through Stepforward.

The PM approved a payment plan with the tenant for a bi-weekly payment plan of $600 until the balance is paid in full.

The tenant did not make an additional payment in March as promised and promised to make the payment on 4/20.

The tenant made a partial payment of $380 instead of the full balance.

The tenant promised to make another payment when they get paid on 5/4, however they do not know how much their check will be.

The tenant owes a balance of $1,742.98 for March and April.

The PM recommends to wait and see how much the tenant can pay on 5/4 before offering Cash for Keys or filing Eviction.

Property Update (03/29/2023):

The tenant has not paid their balance of $784.98 and has informed the PM that they are applying for rental assistance through Step Forward.

The PM is working on setting up a payment plan with the tenant in the interim while they apply for rental assistance.

Property Update (03/25/2023):

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: Scrape & paint full exterior and front porch.

The total estimate for repairs is $9,901.50.

Repair Estimate

A Lead Grant application has been 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.

The tenant made a partial payment of $600 on 3/13.

The tenant owes a balance of $784.98 as of 3/20 for rent ($650) and late fees ($134.98).

The tenant promised to pay the balance on 3/17 and then pushed it back to 3/24, but no payment has been received.

The Property Manager will follow up with the tenant next week to collect the payment.

Property Update (02/18/2023):

The tenant made a partial payment of $500 on 2/9.

The tenant owes a balance of $520.46 for February.

The PM recommends working with the tenant to collect February's rent.

A 3-day notice cannot be posted if rent was collected in the last 30 days and eviction is not an option for February.

Once the tenant pays off their balance, owners will receive rent back-pay and daily rent will begin again.

Property Update (11/01/2022):

The tenant signed a 12-month lease renewal at $1,250/month, a $50 increase (4.2%) from the previous lease.

The lease renewal is effective from 11/01/2022 - 10/31/2023.

Daily rental income will increase starting today.

Property Update (09/22/2022):

The tenant owes for the current month and the balance has grown to $4,053.43.

The tenant has been approved and awarded $9,458.32 in Rental Assistance.

The award covers rents from April 2022 to November 2022.

The Property Manager is still waiting for the award to be distributed.

It will take about 3-4 weeks to receive the award.

Owners will receive back-pay for this property from 7/21/2022 to 9/21/2022.

Daily rental income payments will resume today.

Property Update (08/25/2022):

Tenant's application for rental assistance is in the final stages of approval

Tenant promised to make a payment next week

Once approved for rental assistance, daily rental income will resume, as well as back-pay starting on July 21st

Property Update (08/15/2022):

Tenant made a payment of $2,000 this month, bringing their balance down to $2,589.32

Tenant did not accept the Cash for Keys offer and wants to pay down their balance and stay in the property

Tenant will make weekly payments towards the balance

Tenant applied for rental assistance last month

Waiting on the PM to confirm the terms of the payment plan and the status of the rental assistance application

Property Update (08/05/2022):

Tenant has a past due balance for June and July

Tenant has started applying for rental assistance and promised to pay off their balance by next week

Property Manager has offered tenant Cash for Keys, but tenant has not responded

Tenant has not paid August rent

Property Update (07/21/2022):

Tenant owes for June and July rent

Property Manager has set up a payment plan with tenant and is assisting with rental assistance application

Based on recent governance survey, winning vote is to offer tenant cash for keys for 50% of monthly rent ($600) to vacate property immediately, or 100% of monthly rent ($1,200) if they do not accept

PM will communicate this offer to tenant and proceed with it if tenant does not pay according to payment plan

Daily rental income will resume once tenant catches up on rental payments or a new lease is signed

Property Update (04/05/2022):

Tenant has been paying rent to legacy Property Manager instead of new Property Manager

New Property Manager has now collected this rent and will receive future rental payments

Previous governance vote to do Cash for Keys or Eviction is no longer necessary as tenant has been paying on time and there are no tenant issues

Soon owners will receive all rental income from March 28th to current date, as well as daily rental payments moving forward

Property Update (03/29/2022):

Owners voted to offer tenant cash for keys of $600 to vacate property immediately

If tenant does not accept, they will be offered $1,200 to vacate property immediately