I have reviewed the October 2025 Financial Statements provided by Cohere.

Some observations as of 10/31/25:

• Cash in the Operating Account, including $50K Working Capital loan from Developer-$122,185
• Cash in the Reserve Account- $225,213
• Homeowner Assessments Receivable: $260 (no homeowners more than 1 mo past due)
• Due from VMCA (Vista) for their share of Montaine Circle upkeep: $7742
• No transfer to the Reserve account has been made since 2023. More on this issue in #8 below.

# Closed homes as of 12/11/25: 331 (49% of 664 total planned) 2025 closings from Toll: 75

Operating Deficit for the year thru 10/31/25: $192,311 (prior to Developer Subsidy) This is part of the anticipated deficit funding that the developer has provided and continues to fund on a monthly basis. For 2025, so far $130,899 of deficit funding has been received from the Developer. Also, the Developer has paid RMCA insurance premiums thus far as part of their master insurance policy, which represents additional deficit funding.

Each homeowner who received interest on their New Member Fee refund either as a credit to their homeowner account or otherwise will receive a 1099 for the interest portion so that it can be declared on your 2025 personal tax return. For those unwilling to provide their social security number, we respect your decision, but understand that the HOA is then not able to allow you to keep the interest credit previously posted to your account due to tax implications, and those funds will be tuned over to Colorado’s Unclaimed Property fund. You should have a recent letter and email to this effect.

Our sister community Vista has closed approximately 71% of their intended homes, but the Developer has decided that the calculation of the 75% Transition point will be based on the maximum number of homes called for in their governing documents, which will delay their election of a majority of Board spots by an estimated 12 months, but also allow for continuation of deficit funding, which was the motivation for the change. Nothing has been indicated on the possibility of this also happening here at Regency. . Jay Hamerstadt and I have established a communication link with their current homeowner Board members and have discussed the possibility of a reciprocal agreement with them regarding their pool and our grounds around the clubhouse, however the idea has not gained traction to this point.. If and when the two Boards and attorneys come to an understanding, it is our intent to put the question out to both communities in the form of a survey to make sure this is what the majority of homeowners also want.

An auditor has been retained to examine the accounting records from the inception of our HOA to December 31, 2024, and that audit is in process. That includes records being maintained by two different management companies and three different accounting systems, so it is especially important to have the audit done before our Transition, currently projected sometime in 2028.

As previously reported, no transfers have been made to the Reserve fund since 2023. The Developer had indicated to me in March 2025 that they plan to wait for Transition at 75% of homes closed when the homeowners can elect 4 of the 5 Board spots to promptly bring the Reserves at least up to the level contemplated by the Reserve Study, The 75% point of closed homes is currently projected to be sometime in 2028. I was initially supportive of the plan, predicated on a written agreement to that effect. To date, no such agreement has been presented, and I am no longer supportive of their plan and will make a motion at the next Board meeting to fund Reserves monthly in accordance with the accepted Reserve Study and adopted budget. If the Board approves the motion, funding will begin in 2026.

The approved 2026 HOA budget calls for dues to increase 5% to $221 per month, effective 1/1/26. This is consistent with the multi-year Build Out Budget approved earlier this year.

Submitted by Bill Cirkus
December 11, 2025