URGENT: The Truth About Our Building’s Finances

Dear Fellow Owners,

You recently received a message claiming self-management is “dangerous” and would save only “$100,000.”

These claims are false and unsupported by any financial documents.

Below are the facts—drawn directly from our 2024 Audit (pp. 4, 7, 12, 17, 23), 2025 Budget (pp. 2–5), and Castle Management Contract (pp. 3, 4, 6, 9, 12). Every document is available for your review.

1. Our Expenses Increased by $1.5 Million Under Current Management

(Source: 2025 Budget, pp. 2–5)

Total increase: Over $1.5 million annually

These increases—not self-management—created our deficit.

2. Our Real Debt: $7.5 Million

(Source: 2024 Audit, pp. 4, 7, 12, 17, 23)

• Operating Deficit: $1,547,909
• Outstanding Loan: $6,796,341
• Accrued Interest: ~$1,600,000
• Total Debt: ~$7,500,000

Owners have paid $4,516,777—yet not one dollar reduced the loan principal (Audit p. 12).

Your money went to contractors and interest payments—not debt reduction.

3. Unauthorized Insurance Payment: $216,125

(Source: September 2025 Financial Report)

The Board paid $216,125 to an insurance company using your money—without:

• Engineering report
• Owner approval
• Proper authorization

This payment covered a loss tied to the President’s own actions.

This constitutes potential:

• Misuse of association funds
• Breach of fiduciary duty
• Unauthorized expenditure

You were never informed.

4. Castle’s True Cost: ~$1.3 Million Annually

(Source: Contract pp. 3, 4, 6, 9, 12)

Castle receives far more than “$100,000”:

✓ 19% overhead charges on all expenses
✓ Full payroll control (4 managers vs. typical 1–2)
✓ Hiring authority without competitive bidding
✓ Administrative fees and processing charges
✓ Internal cost markups

These are substantial, recurring, discretionary costs.

5. Self-Management Saves $1.5M–$2.0M Annually

Even hiring licensed professionals directly at market rates saves $1M–$1.5M per year.

These figures come from:

• Our audited financials
• Budget analysis
• Payroll comparisons
• Independent financial review

These are documented facts—not estimates.

6. Our Plan: Lower Your Fees & Repay the Loan

We Will:

✅ Eliminate excessive intermediary fees
✅ Control every contract and expenditure
✅ Cut wasteful spending by $1.5M–$2.0M annually
✅ Reduce your maintenance fees through real savings
✅ Direct all assessment payments to loan repayment
✅ Stop unauthorized charges and hidden fees
✅ Restore complete financial transparency
✅ Protect your property investment

7. Why Change Is Necessary Now

Current Problems:

🔴 Chiller truck: $1,000/day for one year
🔴 Common area lights: burning continuously for 12 months
🔴 Board members: not on-site
🔴 Treasurer & IT admin: based in Argentina, no signing authority
🔴 Invoices: approved without verification
🔴 Owners: removed from communication channels
🔴 Information: concealed from residents
🔴 Construction: minimal staffing, maximum delays
🔴 Expenses: continuously rising
🔴 Deficit: growing larger

This is unsustainable and unacceptable.

8. Safe 1-Year Self-Management Trial

Our Proposal:

One-year pilot program with complete transparency

After 12 months, you decide whether to:

• Continue self-management
• Return to Castle
• Hire a different licensed company

The choice belongs to owners—not intermediaries.

The Bottom Line

This is your home. Your money. Your investment.

We Stand For:

💎 Transparency – Full disclosure of all finances
💎 Control – Direct oversight of every dollar
💎 Accountability – Responsible financial management
💎 Real Savings – $1.5M–$2.0M annually
💎 Real Recovery – Actual loan repayment
💎 Owner Protection – Your interests first

Don’t Let Fear Tactics Distract From the Facts

Review the documents yourself. Ask questions. Demand answers.

The responsible path forward protects owners—not intermediaries.

All referenced documents are available for owner review. Request copies from the Board or contact us directly.

Together, we can restore financial integrity to our building.