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UPDATES.md

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Property3850 W 17th St, Cleveland, Ohio 44109
FolderREADME & Property Snapshot
KindText
Updated2026-07-11
Dropbox path00 - README & Property Snapshot/UPDATES.md

What This File Appears To Be

Property Updates ## 2026-04-13 - Property Update (04/13/2026): - We are actively monitoring sale/disposition-related file activity for this property. - Transaction and documentation review is in progress. - A follow-up owner update will be sent with any material changes to status, timeline, or economics. - Confirmed transaction stage - Any owner actions required - Reconciliation/distribution notes if closing occurs ## 2026-04-06 - Property Update (04/06/2026): - Yhome Transition Reconciliation

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# Property Updates

## 2026-04-13

- Property Update (04/13/2026):
- We are actively monitoring sale/disposition-related file activity for this property.
    - Transaction and documentation review is in progress.
    - A follow-up owner update will be sent with any material changes to status, timeline, or economics.
    - Confirmed transaction stage
    - Any owner actions required
    - Reconciliation/distribution notes if closing occurs

## 2026-04-06

- Property Update (04/06/2026):
- Yhome Transition Reconciliation (as of 2026-04-06 via Lofty PM/Yhome Transition Reconciliation.xlsx):
    | Field | Value |
    |-------|-------|
    | Yhome Net Due TO DAO | $-9,633.29 |
    | Lofty Operating Cash | $-11,936.64 |
    | ECO Operating Cash | $-5,482.82 |
    | Outstanding Liabilities (Unpaid Bills) | $-5,410.50 |
    | DAO Net Cash (Capital Call) | $-38,250.48 |
    | Estimated Owners' Equity | $127,840.00 |
    | DAO Estimated NAV Per Token | $26.87 |
    | DAO Tokens | 3334 |
    | Current PM | ECO (Selling) |

## 2025-12-18

- Property Update (12/18/2025):
- A new 8-month lease (12/29/2025-08/31/2026) for Apt 2 has been signed at $745/month.
    - The DAO currently owes $29,075.48 between Yhome, Aligned, ECO Systems, Lofty, and unpaid taxes. All financial statements are in the the Financials subfolder in Dropbox.
    - With a projected net cashflow of $823/month, it will take almost 4 years at 12% interest rate amortized to zero out this $29k debt.
    - NAV is ~$47.95/share at a $201k AVM per [LoftyAssist](https://www.loftyassist.com/properties/01FTHEFJPXP17ENCEMWQMCHNXQ). This estimate has not been evaluated by a licensed broker.
    - At this point, a vote for a capital call to raise funds (requiring a lender to fund a loan or dilutive equity), refinance via non-recourse/DSCR loan (requiring a DAO member to volunteer as borrower), or sale of the property on the MLS is required.
    - A governance proposal to determine the next steps will follow this update. Owners may also submit their own proposal(s) to Lofty for a vote.

## 2025-07-15

- Property Update (07/15/2025):
- Governance Results for 3850 W 17th St:
    - The Governance Voting results are back for the owner proposed vote to change property managers.
    - The winning vote is:
    - Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee
    - This voting option received 1,016 / 1,031 token votes, which is equal to 99% of the total votes.
    - The voting results can be found on chain [here](https://allo.info/application/3120229247) or by searching the application ID: 3120229247

## 2025-07-15

- Property Update (07/15/2025):
- Governance Results for 3850 W 17th St:
    - The Governance Voting results are back for the owner proposed vote to change property managers.
    - The winning vote is:
    - Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee
    - This voting option received 1,016 / 1,031 token votes, which is equal to 99% of the total votes.
    - The voting results can be found on chain [here](https://allo.info/application/3120229247) or by searching the application ID: 3120229247

## 2025-07-07

- Property Update (07/07/2025):
- Owner-Proposed Governance Vote for 3850 W 17th St:
    - The current property manager, M1 Homes LLC with the following [wallet address](https://allo.info/account/PRLPPSU53SGKIK5Y7L2LAZPRJHDRO35FHXPFZQCQAWLOBCRKVGX5B7T6XI), is proposing a governance vote.
    - M1 Homes LLC holds 50 tokens in this property.
    - The property manager'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: Transition Property Management to ECO Systems LLC
    - Background:
    - When M1 Homes LLC was originally proposed as property manager, it was under the condition that the property in question would be free of outstanding financial obligations at the time of transfer. Unfortunately, that condition has not been met. The property currently carries unresolved debts and liabilities, placing it outside the original scope of M1 Homes' intended role.
    Given this, M1 Homes LLC does not believe it is appropriate or consistent with its original proposal to assume management responsibilities under the current financial conditions.
    - Recommendation:
    - We propose transferring property management responsibilities to ECO Systems LLC. Earl, representing ECO Systems, has been closely involved in the property's financial tracking and has maintained comprehensive and transparent spreadsheets regarding its operational and debt status. His proactive engagement and detailed oversight make him well-positioned to step into the property management role at this time.
    - Key Points Supporting This Proposal:
    - Original Agreement Integrity: M1 Homes' proposal was contingent on a debt-free property. Continuing under current conditions would contradict that premise.
    - Established Oversight: ECO Systems, led by Earl, has already demonstrated deep operational familiarity with this property through diligent financial documentation.
    - Capital Flexibility: Upon transition, ECO Systems LLC will have the discretion to propose capital calls to EARLDAO as needed for property stabilization and repair planning.
    - Operational Efficiency: ECO Systems LLC, in coordination with Hemlane as sub-property manager, offers a lean and transparent fee structure with no repair markups and rent-readiness verification.
    - Property Management Transition (If Property is Retained):
    - Option 1 ) Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee: One month's rent Hemlane rent-ready service $495 + materials & labor costs 10% markup on repairs or maintenance to Aligned if we must stay with them due to LAIC requirement, no markup to ECO Systems Rent placement to follow post-rehab verification
    - ECO Systems may initiate capital calls post-transition
    - Option 2 - Reject Vote #2 and Remain with M1 Homes LLC
    - M1 Homes remains as manager
    - No changes to current structure
    - Financial obligations remain unresolved under the existing framework
    - The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 15th once the voting period ends.

## 2025-07-07

- Property Update (07/07/2025):
- Owner-Proposed Governance Vote for 3850 W 17th St:
- The current property manager, M1 Homes LLC with the following [wallet address](https://allo.info/account/PRLPPSU53SGKIK5Y7L2LAZPRJHDRO35FHXPFZQCQAWLOBCRKVGX5B7T6XI), is proposing a governance vote.
- M1 Homes LLC holds 50 tokens in this property.
- The property manager'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: Transition Property Management to ECO Systems LLC
- Background:
- When M1 Homes LLC was originally proposed as property manager, it was under the condition that the property in question would be free of outstanding financial obligations at the time of transfer. Unfortunately, that condition has not been met. The property currently carries unresolved debts and liabilities, placing it outside the original scope of M1 Homes’ intended role.
Given this, M1 Homes LLC does not believe it is appropriate or consistent with its original proposal to assume management responsibilities under the current financial conditions.
- Recommendation:
- We propose transferring property management responsibilities to ECO Systems LLC. Earl, representing ECO Systems, has been closely involved in the property’s financial tracking and has maintained comprehensive and transparent spreadsheets regarding its operational and debt status. His proactive engagement and detailed oversight make him well-positioned to step into the property management role at this time.
- Key Points Supporting This Proposal:
- Original Agreement Integrity: M1 Homes’ proposal was contingent on a debt-free property. Continuing under current conditions would contradict that premise.
- Established Oversight: ECO Systems, led by Earl, has already demonstrated deep operational familiarity with this property through diligent financial documentation.
- Capital Flexibility: Upon transition, ECO Systems LLC will have the discretion to propose capital calls to EARLDAO as needed for property stabilization and repair planning.
- Operational Efficiency: ECO Systems LLC, in coordination with Hemlane as sub-property manager, offers a lean and transparent fee structure with no repair markups and rent-readiness verification.
- Property Management Transition (If Property is Retained):
- Option 1 ) Transition to ECO Systems LLC as PM with Aligned, Hemlane, or Nomad as Sub-PM 15% Property Management Fee to ECO Systems Leasing Fee: One month's rent Hemlane rent-ready service $495 + materials & labor costs 10% markup on repairs or maintenance to Aligned if we must stay with them due to LAIC requirement, no markup to ECO Systems Rent placement to follow post-rehab verification
- ECO Systems may initiate capital calls post-transition
- Option 2 – Reject Vote #2 and Remain with M1 Homes LLC
- M1 Homes remains as manager
- No changes to current structure
- Financial obligations remain unresolved under the existing framework
- The results will be determined by a 60% Supermajority and sent to all owners on Tuesday, July 15th once the voting period ends.

## 2025-07-07

- Property Update (07/07/2025):
- Owner-Proposed Governance Vote for 3850 W 17th St:
    - The current property manager, M1 Homes LLC with the following [wallet address](https://allo.info/account/PRLPPSU53SGKIK5Y7L2LAZPRJHDRO35FHXPFZQCQAWLOBCRKVGX5B7T6XI), is proposing a governance vote.
    - M1 Homes LLC holds 50 tokens in this property.
    - The property manager'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: Transition Property Management to ECO Systems LLC
    - Background:
    - When M1 Homes LLC was originally proposed as property manager, it was under the condition that the property in question would be free of outstanding financial obligations at the time of transfer. Unfortunately, that condition has not been met. The property currently carries unresolved debts and liabilities, placing it outside the original scope of M1 Homes' intended role.
    Given this, M1 Homes LLC does not believe it is appropriate or consistent with its original proposal to assume management responsibilities under the current financial conditions.
    - Recommendation:
    - We propose transferring property management responsibilities to ECO Systems LLC. Earl, representing ECO Systems, has been closely involved in the property's financial tracking and has maintained comprehensive and transparent spreadsheets regarding its operational and debt status. His proactive engagement and detailed oversight make him well-positioned to step into the property management role at this time.
    - Key Points Supporting This Proposal:
    - Original Agreement Integrity: M1 Homes' proposal was contingent on a debt-free property. Continuing under current conditions would contradict that premise.
    - Established Oversight: ECO Systems, led by Earl, has already demonstrated deep operational familiarity with this property through diligent financial documentation.
    - Capital Flexibility: Upon transition, ECO Systems LLC will have the discretion to propose capital calls to EARLDAO as needed for property stabilization and repair planning.
    - Operational Efficiency: ECO Systems LLC, in coordination with Hemlan