GAS RISER PROJECT UPDATE

Dear Neighbors:

The gas lines replacement project has begun, with the first phase being construction of the 3 replacement risers. At this point materials have been delivered and preparatory work is being done. The noisy work (drilling and construction of the new risers in the stairwells) should start on Monday, May 21, 2007. As stated at the annual meeting, we expect this first phase to last about 4 weeks, plus or minus 2 weeks. As noted, there are several variables that go into the projected timing, and these are purely estimates that may not hold. We will keep you updated as the project progresses and of any changes in timing as we learn of them.

Riser completion is the first milestone. The second milestone will be the passing of the Department of Buildings and Con Edison inspections upon completion of phase 1 . It will be after the first and second milestones that the gas will be shut off. To have a date circled on the calendar we are very loosely estimating around July 2nd. Again, there are many variables that we cannot control, and approvals could come earlier or later so this is a very loose date that may easily change.

The 3rd Milestone will be turning gas back on for the first sets of apartments. As discussed at the annual meeting, the apartment order will be from the top floor to the ground floor on each of the risers. Once we pass the inspection after the second milestone, we should be in a better position to provide a rough estimate of timing for this phase as well as an estimated range of when your floor would be checked.

We will keep you posted of progress and developments.