I have reviewed the January, February and March 2026 Financial Statements provided by Cohere.

Some observations as of 3/31/26:

• Cash in the Operating Account, including $50K Working Capital loan from Developer-$106,913
• Cash in the Reserve Account- $249,592
• Homeowner Assessments Receivable: $274 (1 homeowner 1 mo. past due)
• Due from VMCA (Vista) for their share of Montaine Circle upkeep: $18,230
• Due from Declarant for funding of 2025 Reserves: $260,700
• Due from Declarant for funding of January-March 2026 Reserves: $68,759

# Closed homes as of 4/1/26: 344 (51% of 664 total planned) 2026 closings from Toll: 7

Operating Deficit for 2026 thru 3/31/26/26: $69,670 (prior to Declarant Subsidy) This is part of the anticipated deficit funding that the developer has provided and continues to fund monthly. So far in 2026, $13,589 of deficit funding has been received from the Developer towards the 2025 deficit, but none towards the 2026 deficit. The deficit includes the Reserve funding accrued but unpaid by the Declarant.

An Executive Financial Summary is attached to this report for the first 3 months of the year. Note that the accounting records are unaudited at this point, and the financials provided by Cohere that are the basis of this report have not yet been approved by the Board, so the numbers may be adjusted at a later date.

Our sister community Vista has closed approximately 77% of their intended homes, however the Developer in conjunction with their homeowner elected Board members 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 until later this year. It will also allow for continuation of deficit funding, which was the motivation for the change. They are 63 closed homes away from reaching that mark. Since we share Maleah’s time and related compensation with Vista, their Transition to a, 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 still 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 and are being billed and accrued monthly as a Receivable due Regency in the 2026 financials. No payment for Reserve funding has been received from the Declarant as of this date, and the Declarant has recently sent a letter to the Board stating that while they are committed to “continue serving and providing the best operational support to the community through our team’s stewardship on the Board of Directors,” and further “Toll Brothers decision to fund the reserve account at the time of Transition remains unchanged. We (Toll) are committed to supporting the community through monthly Operating Fund subsidy contributions and will continue payment of monthly invoices for operational costs less reserve contributions or other unagreeable expenses.” The Board met earlier today (4/30) with the HOA’s attorney and learned that the Declarant is not obligated to actually fund Reserves under current Colorado law or our governing documents prior to Transition. I will continue to pursue more substantive assurances from them beyond their letter, but they would likely only entertain that concept in an effort to promote a positive relationship leading into
Transition.

As previously reported, 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

April 30. 2026