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2026-07-14 - Retained Earnings and Yield Restart Proposal - 90 Madison Ave, Albany, NY 12202.md

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90 Madison Ave DAO Governance Proposal - Reconciled Retained Earnings and Yield Restart **Property:** 90 Madison Ave, Albany, NY 12202 **Lofty asset:** LFTY402 / ASA 1847628608 **Calculation date:** July 14, 2026 **Status:** Draft for property-DAO review and vote ## Purpose Approve the reconciled 2026 retained-earnings balance, confirm that no ECO Systems principal remains outstanding as of the cutoff, and authorize yield distributions to resume from future distributable cash after ordinary pr

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# 90 Madison Ave DAO Governance Proposal - Reconciled Retained Earnings and Yield Restart

**Property:** 90 Madison Ave, Albany, NY 12202  
**Lofty asset:** LFTY402 / ASA 1847628608  
**Calculation date:** July 14, 2026  
**Status:** Draft for property-DAO review and vote

## Purpose

Approve the reconciled 2026 retained-earnings balance, confirm that no ECO Systems principal remains outstanding as of the cutoff, and authorize yield distributions to resume from future distributable cash after ordinary property obligations and the approved operating reserve are funded.

## Reconciled Position

| Metric | Amount / Value |
|---|---:|
| Reconciliation cutoff | 2026-07-14 |
| Accounting retained earnings; no approved interest | $1,893.96 |
| Accounting ECO principal | $0.00 |
| Hypothetical retroactive 12% carrying charge | $131.98 |
| Retained earnings after hypothetical charge | $1,761.98 |
| Equity or EARLDAO conversion required now | No |

The 12% amount is a counterfactual only. No governance approval or executed EARLDAO note currently authorizes a retroactive carrying charge. The accounting balance therefore remains $1,893.96 unless voters expressly choose the interest-adjusted option.

## Accounting Basis

- Completed months January through June 2026 close to $0.00 in ECO GL Column E.
- Monthly profit first repays any ECO principal and then builds retained earnings.
- Monthly loss first uses retained earnings; only an uncovered deficit becomes ECO principal.
- Inter-account transfers are cleared separately and are not treated as property income or expense.
- July 2026 remains an in-progress month and will be closed after month-end.
- Supporting detail appears in the `2026 Capital Reconciliation` tab of the property Cash Flow Statement.

## Authorization

- Accept $1,893.96 as the accounting retained-earnings balance as of July 14, 2026, subject to ordinary July month-end activity.
- Confirm that no shares need to be issued to ECO Systems and no EARLDAO refinancing is required at this cutoff.
- Resume yield distributions after this proposal passes, provided current bills and the approved operating reserve are funded.
- Do not distribute accounting-only transfer-clearing amounts or amounts required for open property obligations.
- Authorize ECO Systems LLC and Lofty AI, Inc. to administer the reconciled records and distribution setting.

## Voting Options

1. **APPROVE ACCOUNTING BALANCE AND RESTART YIELD** - recognize $1,893.96, reject retroactive interest, and resume eligible distributions.
2. **APPROVE INTEREST-ADJUSTED BALANCE AND RESTART YIELD** - deduct the hypothetical $131.98 carrying charge, recognize $1,761.98, and resume eligible distributions.
3. **KEEP DISTRIBUTIONS PAUSED / REMAND** - require a revised reconciliation or reserve decision.
4. **ABSTAIN**.

## Evidence and Limitations

- Governance evidence reviewed: Madison shed vote application 3491455288.
- Lofty token metadata snapshot: 6,450 total tokens, updated 2026-06-29; no dilution is proposed.
- The Baselane close entries are accounting-only and did not move bank cash.
- Passing this proposal does not approve unrelated loans, capital projects, or expenses.