Case Study No. 1

191 unit Condominium Home Owners Association - Sterling, VA

Problems:
When Capitol Property Management (CPM) took over management of the
property it was in serious financial condition and was unable to address
critical deferred maintenance/repair issues.

Numerous leaks from the fire sprinkler system, other maintenance issues,
and a large number of collection issues had depleted the Association's
operating and reserve accounts.

Solutions:
CPM immediately began a campaign to improve the association's image
with exasperated residents, and to communicate the importance in raising
association dues. CPM was able to obtain a loan in the form of a line of
Credit for the Community to allow the Community working capital so that
it could immediately address its deferred maintenance and repairs.

Within three months of taking over management, CPM's Construction &
Maintenance division, in conjunction with the Loudoun County Fire Marshall,
had evaluated, coordinated and begun interior repairs to the fire sprinkler
system, fire alarm panels, and dry rot issues. The completion of the work
allowed the Community to reduce their annual insurance premium by 50%.

The raise in Association dues and a restructured budget provided significant
monthly contributions to the reserve account and payback on the
Association's bank loan.

Vast improvement in customer service improved the image of both the
Community and Management Company in the eyes of residents.