I have reviewed the January 2026 Financial Statements provided by Cohere.

Some observations as of 1/31/26:

• Cash in the Operating Account, including $50K Working Capital loan from Developer – $122,563
• Cash in the Reserve Account – $249,583
• Homeowner Assessments Receivable: $347 (1 homeowner 1 mo. past due)
• Due from VMCA (Vista) for their share of Montaine Circle upkeep: $4648
• Due from Declarant for funding of 2025 Reserves: $260,700
• Due from Declarant for funding of January 2026 Reserves: $22,219

# Closed homes as of 12/31/25: 343 (51% of 664 total planned) 2026 closings from Toll: 6

Operating Deficit for 2026 thru 1/31/26: $9871 (prior to Developer Subsidy) This is part of the anticipated deficit funding that the developer has provided and continues to fund monthly. In 2026, $5742 of deficit funding has been received from the Developer.

Our sister community Vista has closed approximately 77% 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. They are 66 closed homes away from reaching that mark. 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.

The Board at its January 29 meeting unanimously approved a Motion to instruct Cohere to invoice the Declarant for the 2025 Reserve contribution and the 2026 Reserves prorated monthly, based on the 2023 Reserve Study. Those invoices were prepared and sent by Cohere in February and accrued as a Receivable due Regency as of these January financials. No payment for Reserve funding has been received from the Declarant as of this date, and Cohere is working to provide the requested documentation to the Declarant in order to process payment.

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.

Click this link to view the 2026 Executive Financial Summary.

Submitted by Bill Cirkus

March 4. 2026