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

(Note 2): Some observations as of 4/30/26:

• Cash in the Operating Account, including $50K Working Capital loan from Developer-$168,727
• Cash in the Reserve Account- $250,990
• Homeowner Assessments Receivable: $2003 (Primarily 1 homeowner past due)
• Due from VMCA (Vista) for their share of Montaine Circle upkeep: $3621
• Due from Declarant for funding of 2025 Reserves: $260,700
• Due from Declarant for funding of January-April 2026 Reserves: See Note 10 Below

# Closed homes as of 5/1/26: 354 (53% of 664 total planned) 2026 closings from Toll: 17

(Note 4):Operating Deficit for 2026 thru 4/30/26/26: See Note 10 Below (prior to Declarant Subsidy) This is part of the anticipated deficit funding that the developer has provided and continues to fund monthly. The deficit should include the Reserve funding accrued but unpaid by the Declarant.

(Note 5): I’ve left out the Executive Financial Summary normally attached to this report since the results of the financial reports provided by Cohere are not accurate or meaningful as per Note 10 below. 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 on the Executive Financial Summary, when included, may be adjusted at a later date.

Our sister community Vista is 55 closed homes away from reaching Transition when the homeowners will elect a majority of the Board, and the Developer will end their deficit funding. 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 to be 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 they don’t plan to fund Reserves until Transition. The Board met 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.

As previously reported, the approved 2026 HOA budget called 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.

(Note 10): Cohere’s Senior Accounting Management team has recently had a major staff turnover, and their handling of the accounting for Reserves and the Developer Deficit Funding has not been correct. We’ve met with the new team, who will make the changes retroactive to the beginning of the year, but not until the May or possibly the June financial reports. As a result, the reporting of the relevant numbers in Notes 2, 4 & 5 above have been left out until the corrections are made.

It is our intent to form a Finance Committee comprised of homeowners to expand the understanding of RMCA’s finances, Reserves and insurance beyond myself. I’m hoping to see that happen in the coming months.

Submitted by Bill Cirkus

May 29, 2026