rENT INCREASE

lAST MIDTOWN PLAZA

HOUSING COMPANY. INC.'



319 EAST 24th STREET • NEW YORK, NY. 10010 TEL (212)679-4342
FAX (212) 689-7635

Memo Maintenance Increase

14, August 2007 To All Cooperators:

We have just been notified in a letter from HUD dated August 9th 2007, that it has approved our request for an increase in maintenance. A 20% increase will go into effect November 1st after the final payment of the special assessment due October 1st, so as to not place an undue burden on cooperators.

As you know, it took approximately 8 months for us to do all of the paperwork necessary to get HUD to act upon EMP's request for a badly needed assessment and the release of our reserve monies to meet our financial obligations. Indeed it took the action of our Congresswoman, Carolyn Maloney and the direct participation of our cooperators to obtain this result.

Working against the best interests of EMP. members of EMP's anti-privatization group (some of whom have run unsuccessfully for EMP's Board) wrote to HUD and specifically asked that HUD not approve these requests. In fact, they attempted to convince HUD that these requests were nothing more than a "scare tactic" by EMP's Board. One cooperator accused the Board of using HUD to mislead EMP cooperators, and of violating its fiduciary duties. She also asked that the Board be removed.

The members of the Board want to assure all cooperators that even in this financial crisis, the Board is running EMP on a financially sound basis. We are committed to fulfilling the promises we made to all shareholders when you elected us: We will make our community once again the beautiful and safe middle income residential development it was designed to be and we will also do everything possible to ensure that EMP will remain affordable for all of its current cooperators.

In conclusion, the Board once again wants to thank you for your support while we waited to obtain the necessary approvals from HUD. We look toward the future, when all of us at EMP will work together again, and when the very few neighbors in our community who have little understanding of the financial needs of EMP will stop their attempts to attack and libel the Board to the financial detriment of us all.

Oe/told B Fdx Prudent Board of Directors