UPDATES.md

# Property Updates

## 2026-07-14

- **Property Update (07/14/2026):**
    - Hi everyone,

    - 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: $2,776.50
    - Operating Expenses: -$4,915.05
    - NOI: -$2,138.55
    - Net Operating Cashflow: -$12,354.55

    - 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: $3,239.27 (Lofty curr_maintenance_reserve)
    - ECO Operating Cash: -$999.29 (ECO Systems General Ledger Column E (193 rows))

## 2026-04-06

- **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: $3,239.27
    - ECO Operating Cash: $12,864.20
    - Outstanding Liabilities (Unpaid Bills): $0.00
    - DAO Net Cash (Capital Call): $5,703.51
    - Estimated Owners' Equity: $334,205.69
    - DAO Estimated NAV Per Token: $48.41
    - DAO Tokens: 7021
    - Current PM: ECO

## 2026-03-26

- **Property Update (03/26/2026):**
    - Owner-Proposed Governance Results for 8143 S Sangamon St:
    - The Governance Voting results are back for the owner-proposed vote.
    - The winning vote is:
    - Approve $10,000 ULD loan at above terms, $10,300 with 3% origination fee.
    - This voting option received 1,735 / 2,050 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: 3494400978

## 2026-03-23

- **Property Update (03/23/2026):**
    - Owner-Proposed Governance Vote for 8143 S Sangamon St:
    - An owner with the following [wallet address](https://allo.info/account/K7ECVKDY4M265CKEU3JAPQILTLFSR26KV3WXYRGG7BIRY2CSFDK6OU2T3I), is proposing a governance vote.
    - This owner holds 44 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.
    - The location requires porch repair based on violations recieved from the City. We have enough OR to cover approximately 1/2 of the needed amount. We need a bridge loan to cover the excess amount not covered by OR and/or anticipated monthly NOI before payment is due.
    - The PM (Earl) estimates the need at up to $19,000 for required porch repair. Reminder this location is a stable legacy property, two full secured, paying tenant. Monthly NOI is approximately $1953.
    - This proposal authorizes a ULD funding structure: $10,000 from the Universal Lending DAO (3% origination fee, 13.5% APR compounded monthly, 3-year term (extendable to 4th year, per performance on loan). Loans carry a minimum monthly payments of $75/mo or Interest-Only, whichever is greater after 60 days and loans are if any schedule minimum monthly payments are missed, and are unable to be cured within 60 days, the ULD will seek the DAO to refinance or preside over sale of the property, with the ULD having full-authorization.
    - In this proposal, the minimum monthly terms and 60 grace period on payments are ULD generic, during the length of the loan, Reserves after minimum payments made should be 100% until $3000 minimum, 50% until $6000 and 25% refill minimum until $12,000. This provides well-capitalization on any non-ULD expenses
    - Voting Options:
    - Approve $10,000 ULD loan at above terms, $10,300 with 3% origination fee.
    - Do not Approve loan and seek other funding sources- further time and discussion needed and could slow down process resulting in further violation.
    - The results will be determined by a 60% Supermajority and sent to all owners on Thursday, March 26th once the voting period ends.

## 2025-12-02

- **Property Update (12/02/2025):**
    - Owner-Proposed Governance Results for 8143 S Sangamon St:
    - The Governance Voting results are back for the owner-proposed vote.
    - The winning vote is:
    - Option A
    - This voting option was declared the winner in Round 2 with 1,518 token votes.
    - The voting results can be found on chain [here](https://allo.info/application/3350367729) or by searching the application ID: 3350367729
    - Option A overview:
    - Reduce OR target to $7,500
    - 100% of cash flow to OR until $7,500 is reached
    - Afterward, 50% of cash flow allocated to OR indefinitely
    - Remaining 50% distributed to investors

## 2025-11-25

- **Property Update (11/25/2025):**
    - Owner-Proposed Governance Vote for 8143 S Sangamon St:
    - An owner with the following [wallet address](https://allo.info/account/UJA2Y2GA3JZAL47HB2RN3SOHNM53HGZBTBZQXE3L6HVA4WC62QHUNZ4L4A), is proposing a governance vote.
    - This owner holds 351 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.
    - Proposal Summary
    - Current OR Status:
    - Balance: ~$36
    - Target: $23,794
    - 100% of cash flow currently going to OR
    - Estimated ~2 years before distributions resume
    - Issue:
    - The current OR target delays investor distributions for an extended period despite positive cash flow.
    - Proposed Adjustment
    - Option A
    - Reduce OR target to $7,500
    - 100% of cash flow to OR until $7,500 is reached
    - Afterward, 50% of cash flow allocated to OR indefinitely
    - Remaining 50% distributed to investors
    - Option B
    - Reduce OR target to $7,500
    - 100% of cash flow to OR until $7,500 is reached
    - Afterward, 25% of cash flow allocated to OR indefinitely
    - Remaining 75% distributed to investors
    - Excess Funds
    - Any OR balance above $7,500 (plus ongoing allocations) can be handled through future community votes — whether to distribute, retain, or use for improvements.
    - Rationale
    - Current target is oversized for this asset
    - New target restores distributions much sooner
    - Ongoing 50% or 25% allocation maintains a strong, growing OR
    - Provides flexibility to adjust or distribute excess funds through future votes
    - The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, December 2nd once the voting period ends.

## 2025-09-23

- **Property Update (09/23/2025):**
    - Owner-Proposed Governance Results for 8143 S Sangamon St:
    - The Governance Voting results are back for the owner-proposed vote.
    - The leading vote is:
    - Yes, repurchase tokens with 100% of FCF
    - This option received 1,568 / 2,737 votes which is equal to 57% of the total votes.
    - The vote will not pass because it did not reach a 60% Supermajority.
    - The voting results can be found on chain [here](https://allo.info/application/3229800879) or by searching the application ID: 3229800879

## 2025-09-19

- **Property Update (09/19/2025):**
    - Owner-Proposed Governance Vote for 8143 S Sangamon St:
    - An owner with the following [wallet address](https://allo.info/account/TBM7IBZYTO5GGMTELJXSIAV5N55YETID4CXR5E23P2C3ARKPNWKII2LS3M), is proposing a governance vote.
    - This owner holds 85 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.
    - Per earl's recommendation,
    - We have an opportunity to buy back a significant percentage of the DAOs tokens while the token price is depressed, improving member equity and cash flow for the future and preventing rents from orphaned (unowned) tokens from being diverted to other DAOs' liquidity pools (the status quo for Lofty AMM).
    - I would like to propose that we use 100% of DAO free cash flow to repurchase tokens until token price reaches $30 OR the liquidity pool reaches a token shortage.
    - Vote:
    - Yes, repurchase tokens with 100% of FCF
    - No, maintain current cash flow structure
    - The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, September 23rd once the voting period ends.


- **Property Update (09/19/2025):**
    - An owner of this property, the property manager (ECO Systems LLC), has put together a counter-proposal.
    - This is in response to the counter-proposal sent out on 9/19, which can be viewed on the property page in the "Property Updates" section.
    - 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 16 tokens in this property, and his wallet can be viewed [here](https://allo.info/account/YILY2YPFH2HODAZSMVJ6C2URUTBJSEPB3377SIKHFCFMGQEEFAJ3E5TYDM).
    - 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.
    - Counter-proposal, merely as a point of clarification and correction:
    - This proposal simply requests that the DAO itself allocate the first $5k of its ~$23k OR refill using 100% of the net cashflow after all necessary repairs have been completed towards holding shares in the DAO itself, such that it can be liquidated whenever it's needed via limit or market sell orders. In the meantime, rents from orphaned tokens are retained by the DAO itself rather than being donated to other DAOs’ liquidity pools as it currently stands. Rents accompanying these purchased tokens will be returned to the DAO’s balance sheet to accelerate OR refills.
    - The PM (ECO Systems LLC) shall handle the token buyback WITHOUT sending the shares to the burn address. This is a share buyback WITHOUT a corresponding burn. They will technically remain in circulation but held in a wallet owned by the DAO itself.
    - Also, the previous counter-proposal has incorrect numbers. The roof repairs are $16k. There’s ~$5600 in the DAO’s bank account currently, as well as ~$6,500 held by Lofty. $8k of that is due to the roofers upon completion, leaving $4,100 for all other repairs before October’s rents come in. Earl is attempting to obtain better quotes than the ones HRG’s vendors obtained. Once all repairs are completed, only then shall this be executed. It would otherwise make no sense to continue paying Lofty’s trading fees just to buy back shares only to sell them again (unless they’re resold at a higher price than when they’re bought, which is actually quite possible in this DAO).
    - If the counter-proposer wants to get rid of their tokens at deep discounts, then the DAO should be happy to provide exit liquidity to remove these shares from supply, thereby returning a greater share of rents to everyone else remaining in the DAO.
    - Once again, the property is NOT in debt. Please vote yes so a portion of the OR can be held as liquid shares of the property itself, thus effectively removing them from circulation.


- **Property Update (09/19/2025):**
    - An owner of this property has put together a counter-proposal.
    - This is in response to the governance vote sent out on 9/19, which can be viewed on the property page in the "Property Updates" section.
    - 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 240 tokens in this property, and his wallet can be viewed [here](https://allo.info/account/NKCGAJML3X56QQMQLAXJFT6JDYRZEABKVO42FLBYLXBEOJHYIS6ES4XLUI).
    - The owner's counter-proposal is below, w