I have reviewed the October, November and December 2025 Financial Statements provided by Cohere.

Some observations as of 12/31/25:

• Cash in the Operating Account, including $50K Working Capital loan from Developer$140,909
• Cash in the Reserve Account- $225,625
• Homeowner Assessments Receivable: $25 (no homeowners more than 1 mo past due)
• Due from VMCA (Vista) for their share of Montaine Circle upkeep: $0
• # Closed homes as of 12/31/25: 337 (50% of 664 total planned)
  2025 closings from Toll: 75

Operating Deficit for the year thru 12/31/25: $174,957 (prior to Developer Subsidy and budgeted Reserve Contribution) This is part of the anticipated deficit funding that the developer has provided and continues to fund monthly. For 2025, $189,898 of deficit funding has been received from the Developer. Also, the Developer had paid some of RMCA insurance premiums as part of their master insurance policy, which represents additional deficit funding. RMCA has been insured through our own stand-alone policies since April 2025.

Each homeowner who received interest on their New Member Fee refund either as a credit to their homeowner account or otherwise WILL NOT receive a 1099 for the interest portion. The Board has recently received legal guidance that RMCA is not required to provide 1099s to recipients. Consult with your tax advisor as to the appropriate treatment on your personal tax return.

Our sister community Vista has closed approximately 76% of their intended homes, however the Developer in conjunction with their homeowner elected Board members have 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 until later this year. It will also allow for continuation of deficit funding, which was the motivation for the change. Since we share Maleah’s time and related compensation with Vista, their Transition, homeowner-controlled Board and elimination of deficit funding by the Developer may have an impact on Regency.

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. Once complete, we will engage an auditor for the year ended December 31, 2025.
No transfers have been made to the Reserve Fund since 2023. I plan to make a motion later at today’s meeting to fund the 2025 Reserves and then begin funding monthly for 2026 in accordance with the accepted Reserve Study and adopted budget. The Reserve Study assumed no funding in 2024. If the Board approves the motion, funding will begin this year.

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 previously approved, which also incorporates a 5% increases each subsequent year through Transition, currently projected sometime in 2029.

Submitted by Bill Cirkus
January 29. 2026