Dear Owners,

The Board is attempting to make urgent changes to our governing documents while individually calling owners and providing verbal explanations without any written proof. Such actions can mislead owners and have no legal validity.

Please rely only on official information: the budget, the audit, the Property Management Company contract, security expenses, the independent financial analysis, and the data related to the $4,000,000 loan. All of these documents are available on our website, where you can clearly see the full expense structure and the real financial risks facing our building.

The proposed amendment is presented as “giving owners a voice,” but in reality it locks in an extremely expensive management model and limits financial oversight.

❗ Why this amendment is harmful

• The Property Management Company contract creates excessive annual expenses — $1.5M–$2M per year, including: management fee, nearly $1,000,000 payroll, 19% administrative surcharge, $595/month insurance per employee, 0.25% loan commissions, 1% special assessment commissions, 2.5% major project commissions, paid office services, mail charges, paid notices, administrative fees, and high security expenses.

• The 2024 Audit shows: a deficit of over $1.5M, total debt close to $7.5M, $1.6M in interest, a $4,000,000 loan that is NOT decreasing despite $4.5M already paid by owners, an unexplained insurance payout of $216,125 related to the President’s case, with no transparent reporting.

• These numbers confirm that expenses are out of control and a significant increase in maintenance fees is very likely.

❗ Why the Board is pushing this amendment

Our owners’ group introduced the Safe Self-Management initiative, which will:

• renegotiate inflated contracts,

• eliminate unnecessary surcharges and commissions,

• reduce spending,

• ensure full transparency,

• lower maintenance fees,

• accelerate repayment of the loan,

• save $1.5M–$2M per year for owners.

This is why the Board is attempting to limit owners’ rights and prevent any changes through this amendment.

❗ What owners must do

To protect the community and prevent the misuse of quorum, we ask all owners to completely ignore this PROXY:

• do not respond,

• do not return it,

• do not vote YES,

• do not vote NO.

Any vote — including NO — counts toward quorum and helps the amendment pass.

Most importantly

We can restore the financial stability of our building, reduce unnecessary expenses, lower maintenance fees, and repay the loan much faster.

But this is only possible under a self-management model, which gives all owners real control, transparency, and long-term savings.

Ocean Reserve Owners’ Support & Integrity Group