UPDATES.md

# Property Updates

## 2026-07-14

- **Property Update (07/14/2026):**
    - This month's update includes the current reviewed financial summary from the guarded monthly workflow.

    - Financial summary from FINANCIALS.md:

    - Financial data is shown as of 2026-06.

    - Cash Flow Snapshot (2026-06):

    - Revenue: $0.00
    - Operating Expenses: -$164.90
    - NOI: -$164.90
    - Net Operating Cashflow: -$164.90

    - Monthly Cash Position (2026-06):

    - Revenue and operating expenses are scoped to the reporting month. ECO Operating Cash is the current complete DAO-attributed total of Column E across every row in the property-split ECO Systems GL, including accruals.

    - Lofty Operating Cash: $250.05 (Lofty curr_maintenance_reserve)
    - ECO Operating Cash: -$8,236.17 (ECO Systems General Ledger Column E (18 rows))

    - Financial summary:
    - Lofty-held current maintenance reserve: $250.05
    - ECO GL Column E sum: -$8,236.17 (18 rows)

## 2026-01-06

- **Property Update (01/06/2026):**
    - The tenant has been provided with a new lease by Earl on behalf of the Cherry LFTY0412 DAO LLC, and is being onboarded onto Hemlane.
    - He has paid December rent in escrow with the court house due to Cal's improperly executed self-help eviction attempt and multiple lease violations.
    - Earl is working with the tenant to bring them current on January rent and secure possession of December rent from escrow on behalf of investors.
    - Whalec Property Management is owed $3,717.69 for 3 months of mortgage interest payments last August to bring the mortgage current.
    - The current state of the mortgage is unknown, but Cal claims it is current at the moment.
    - If the DAO were to take over interest-only payments until the balloon due on June 1st, 2028, the estimated Annual NOI is -$1,549.45.
    - This is a net loss of $129 per month at current rents.
    - Distributions are not expected until outstanding liabilities are settled, the property is re-stabilized, and the loan is refinanced to a more favorable monthly payment.
    - Owners are invited to volunteer to lend their >720 FICO to obtain a non-recourse or DSCR loan and refinance the loan out of Yhome with better rates than the current 5% (good luck), submit a proposal for a capital call >=$10k to pay back Whalec and provide working capital for mortgage, taxes, and insurance payments, and/or decide to list the property for sale and recover funds owed from Cal by burning part or all of his current ~23% share in the equity.

## 2025-11-25

- **Property Update (11/25/2025):**
    - Governance Results for 49 Bannbury Ln:
    - The Governance Voting results are back for the owner-proposed votes.
    - The winning vote is:
    - Yes [Approve proposal]
    - This was voted on by 27 participants in total. Out of the total number of participants, 26 voted for the winning vote, totaling 89.79% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
    - The voting results can be found on chain [here](https://allo.info/application/3341027759) or by searching the application ID: 3341027759
    - The winning vote is:
    - Yes [Approve proposal]
    - This was voted on by 27 participants in total. Out of the total number of participants, 26 voted for the winning vote, totaling 89.79% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
    - The voting results can be found on chain [here](https://allo.info/application/3341029363) or by searching the application ID: 3341029363

## 2025-11-21

- **Property Update (11/21/2025):**
    - Owner-Proposed Governance Vote for 49 Bannbury Ln:
    - The elected authorized representative of the DAO, Earl Co, is proposing a governance vote.
    - Their 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.
    - This Resolution of the members of CHERRY LFTY0412 DAO LLC (the "Bannbury DAO" or "DAO") seeks authorization for Earl Vanze Co acting as Authorized Representative on behalf of the DAO to approve filing a civil lawsuit against Yhome Nursing LLC and/or Calixte Duffaut (the "Prospective Lawsuit"). If approved, this proposal will provide the Bannbury DAO with the authority to file the Prospective Lawsuit, but will not obligate or require the Bannbury DAO to actually file the Prospective Lawsuit. Litigation mechanics and strategy will be finalized at a later date, subject to the advice and recommendation of counsel.
    - If approved, this proposal authorizes Lofty to identify counsel to represent the Bannbury DAO in connection with the Prospective Lawsuit, understanding that Lofty is willing to pay for those legal costs and expenses reasonably incurred by the Bannbury DAO in connection with the Prospective Lawsuit.
    - This proposal is being submitted based upon information and belief that Yhome Nursing LLC and/or Calixte Duffaut (collectively, "Yhome") breached their agreement(s) with the Bannbury DAO and its members, and/or otherwise engaged in wrongful and/or illegal conduct with respect to 49 Bannbury Lane, Palm Coast, FL 32137 ("Bannbury" or the "Property") and the management thereof. More specifically, the conduct motivating this proposal includes, but is not limited to, the following:
    - Yhome's false confirmation that it had obtained the consent of the Property's mortgagee prior to listing the Property on Lofty.
    - Yhome's delay in transitioning out of the property management role.
    - Yhome's misrepresentations to the Bannbury DAO about Bannbury's property manager and "repairs" Yhome purportedly made to the Property.
    - Yhome's withholding of rents and other income duly owed to the Bannbury DAO that were (and are being) generated by the Property.
    - Mr. Duffaut's trespass on the Property during which he damaged the Property by, among other things, removing door locks and security cameras.
    - If approved, this proposal authorizes Earl Vanze Co to serve as the single point of contact for the DAO and liaison to legal counsel on behalf of the DAO, and further authorizes Earl Vanze Co to receive any and all litigation updates from legal counsel on behalf of the DAO, and to make any decisions with respect to the prospective litigation and to authorize any action in the prospective litigation on behalf of the DAO. Such authorization will continue throughout the pendency of the litigation until resolution is reached by settlement, adjudication on the merits, or dismissal, unless otherwise terminated by a valid and enforceable vote of the DAO.
    - Sincerely,
    - Earl Vanze Co, DAO Member and Authorized Representative
    - CHERRY LFTY0412 DAO LLC
    - The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, November 25th, once the voting period ends.

## 2025-07-01

- **Property Update (07/01/2025):**
    - Governance Results for 49 Bannbury Ln:
    - The Governance Voting results are back for the owner-proposed vote.
    - The winning vote is:
    - Yes - Approve exploring refinance options
    - This was voted on by 37 participants in total. Out of the total number of participants, 35 voted for the winning vote, totaling 98.46% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
    - The voting results can be found on chain [here](https://allo.info/application/3098387354) or by searching the application ID: 3098387354

## 2025-06-26

- **Property Update (06/26/2025):**
    - Owner-Proposed Governance Vote for 49 Bannbury Ln:
    - The current property manager, Whalec Property Management, with the following [wallet address](https://allo.info/account/6GRLZ5EIUWKYPMJ7PYSPMR5DG2ZMZAWAK6TLQAJR7G2BTXEPFVXFKNVWHQ), 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.
    - Governance Vote: Refinance Authorization for 49 Bannbury Ln, Palm Coast, FL 32137
    - TL;DR:
    - The property at 49 Bannbury Ln has now been secured and leased after a long delay caused by seller non-cooperation.
    - Cal, the original seller, refused to transfer management for over a month, leaving the property vacant and at risk.
    - It is now under active management by Whalec Property Management LLC, and a lease is in place with a temporary tenant during the turn process.
    - We are requesting a vote to authorize the pursuit of refinancing options, with or without a personal guarantor.
    - Background
    - Dear 49 Bannbury Investors,
    - Over the past month, we faced significant delays in transferring management from Cal, the seller of 49 Bannbury Ln. During this time, the property remained vacant, unprotected, and at risk of deterioration or financial loss.
    - That situation has since changed:
    - Management has been successfully transferred, and Whalec Property Management LLC is now overseeing operations.
    - The property has been secured, and a temporary tenant lease is in place while the turn process continues.
    - These steps have protected the asset, allowed us to generate income, and created an opportunity to stabilize the property moving forward.
    - Additionally, we have documented agreement from Cal to be refinanced out of the deal. I've engaged a lender who has indicated that refinancing the property appears feasible. I am now seeking your formal approval to explore refinancing options, which may or may not include a personal guarantor depending on lender terms and final structure.
    - If you have questions, feel free to DM @whalec in the Lofty Discord.
    - Voting Options
    - 1. Authorize Alec VanBeek and/or Whalec Property Management LLC to pursue refinancing options, with or without a personal guarantor.
    - Yes - Approve exploring refinance options
    - No - Do not authorize refinancing efforts
    - The winning vote will be determined by a Supermajority of 60%+ and the results will be sent to owners on Tuesday, July 1st, once the voting period ends.

## 2025-05-28

- **Property Update (05/28/2025):**
    - Governance Results for 49 Bannbury Ln:
    - The Governance Voting results are back for the owner-proposed votes.
    - The first winning vote is:
    - Yes [Immediate Suspension of Property Management Activities & Fees]
    - This was voted on by 36 participants in total. Out of the total number of participants, 35 voted for the winning vote, totaling 84.03% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
    - The voting results can be found on chain [here](https://allo.info/application/3020511636) or by searching the application ID: 3020511636
    - The second winning vote is:
    - Yes [Transfer Property Management to Whalec Property Management]
    - This was voted on by 36 participants in total. Out of the total number of participants, 35 voted for the winning vote, totaling 84.03% of the voting power. This is a co-ownership property, which means the governance mechanism used the scaled governance calculations as opposed to the default of 1 token equals 1 vote.
    - The voting results can be found on chain [here](https://allo.info/application/3020516499) or by searching the application ID: 3020516499

## 2025-05-24

- **Property Update (05/24/2025):**
    - Owner-Proposed Governance Vote for 49 Bannbury Ln:
    - An Ow