270 Convent - Shareholder Memo: Draft

[Ashley Umukoro]

Shareholder Memo
270 Convent HDFC: Maintenance Increase & Building Financial Health

Dear Shareholders,

We are writing to you with transparency and care regarding the financial health of our building and an important decision that impacts us all.

Over the past several months, the Board has undertaken a thorough review of our building’s finances. What we found is difficult but important to share: our current maintenance levels are no longer sufficient to cover the true cost of operating and maintaining the building.

For 2026, we are projecting a deficit of approximately $205,000. With a proposed 10% maintenance increase, the building would still face a significant shortfall. This is not the result of any single expense or decision, but rather the cumulative impact of rising costs, aging infrastructure, and years of underfunding relative to actual operating needs.

We want to be clear—this is not a step the Board is taking lightly.

We understand that many in our community chose this building because it represents affordability, stability, and access—values that are deeply important, especially for a building like ours. We also recognize that any increase in maintenance can create real financial strain, particularly for those on fixed or limited incomes.

At the same time, we are responsible for ensuring the building remains safe, operational, and financially stable for everyone who lives here now and in the future.

There are several factors driving this decision:

• Rising costs for utilities, labor, and general operations

• Required compliance work, including façade inspections and repairs

• Immediate capital needs, such as roof and water tank repairs

• Limited reserve funds that cannot sustainably cover ongoing deficits

If we do not act now, the risks become more severe. These include the inability to pay for essential services like heat and maintenance, deferred repairs that worsen over time, and potential challenges for buyers to secure financing—ultimately impacting property values for all shareholders.

After careful consideration, the Board is proposing a 10% maintenance increase as an initial step. We recognize that this alone will not fully eliminate the deficit, but it is a necessary move toward stabilizing our finances while we continue to evaluate longer-term solutions.

In parallel, we are also taking additional steps to improve our financial position, including:

• Strengthening collection efforts on outstanding arrears

• Enforcing sublet and building policies more consistently

• Identifying opportunities to reduce costs where possible

• Supporting residents in accessing available programs such as SCRIE, where eligible

We are committed to keeping you informed and engaged. We will also be hosting a shareholder meeting to walk through the financials in more detail, answer questions, and discuss the path forward together.

We know this is not easy news. But we believe that by addressing these challenges now—with honesty and shared responsibility—we can protect the long-term health of our building and preserve the community we all value.

Thank you for your continued commitment and care for our building.

With respect,
270 Convent HDFC - Board of Directors

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Ashley Alero Umukoro, MPH

[Stephane Millet]

Hi Ashley, 

thanks for this draft, it really sets the tone well! May I suggest a few changes and additions. 

in terms of the initial message, it's probably just me but saying that "we are writing with transparency" may unintentionally imply that previous communications lacked transparency—even if that wasn’t the intention. Can I suggest the following wording: We are writing to you to share important updates about the financial health of our building and a decision that impacts us all, with the clarity and care you deserve.

also, I think we should remind everyone that one of the big expenses that we have faced is the increase of the building Insurance, so I would add that to the bullet points that explain the increase in operating costs, and last but not least, in terms of the additional steps, I think we should mention that the building will need to look more closely at the repairs costs and evaluate responsibilities. (meaning the board will not be able to pay anymore for all repairs and will verify potential shareholder's responsability)

let me know what you think

stephane

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[Ashley Umukoro]

Hey Stephane,

These are good edits, thanks for catching those nuances. I'll incorporate the insurance mention and the note about evaluating repair responsibilities. I also added a matching FAQ question; both highlighted in yellow.

The google docs have been updated here.

Thanks,
Ashley