1.

I’ve reviewed the November and December 2024 and the January 2025 Financials provided by Matt Schuster, Cohere’s Senior Accounting Manager.

2.

Some observations as of 1/31/25:

-Cash in the Operating Account-$35,122

-Cash in the Reserve Account- $224,851

-Homeowner Assessments Receivable: $659 (no one more than 1 mo past due)

-Due from VMCA (Vista) for their share of Montaine Circle upkeep: $15,613 (rcvd $58K from Vista)

-No transfer to the Reserve account was made in January. Discussions are in process, and I’ll report on it at the appropriate time.

3.

# Closed homes as of 3/17/25: 275 (41% of 664 total planned) (as corrected from prior report)

2025 closings from Toll:

4.

Operating Deficit Year to Date: $47,881. This is part of the anticipated deficit funding that the developer has funded and continues to fund on a monthly basis.

5.

Interest on New Member Fee refunds were credited to homeowner accounts who received refunds and reduced the February HOA fees for those that have their fees automatically taken from their bank accounts by Cohere. If you have your bank automatically make the payment, that credit is still sitting on your account and will be until you instruct your bank to adjust one of their payments. From what I can tell from the accounting records, there are a large number of homeowners who pay their HOA fees in this fashion.

6.

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.

7.

The Cohere staffing changes announced last week are a good step towards preparing for the possibility that Regency and Vista won’t have the same management company forever, and therefore won’t be able to share staff. That possibility won’t exist until one or both communities have homeowners in a majority of the Board seats, which isn’t a given, but worth preparing in advance for just in case it should happen.

8

As I’ve indicated previously, even though our recent Reserve Study contemplated funding, no such funding was approved by the Board for Cohere to do, and no transfers have been made to the Reserve fund this year. The Developer has now told us 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 up to the level contemplated by the Reserve Study, that being 15% of the aggregate of projected replacement costs. The 75% point of closed homes is currently projected to be sometime in 2028. I have agreed to the concept, subject to an agreement to be signed by the Developer and the homeowner elected Board members specifying the target amount, including the interest earnings on the increasing cash balance contemplated in the Study. The Developer has agreed in concept and an agreement is currently being worked on. This funding at Transition will be separate and apart from any other negotiations and payments or repairs that may result from Transition. My reason for agreeing to this is because what I’m focused on is our financial and physical condition when it’s all on our financial backs, which is at the point of Transition when we are no longer subsidized by the Developer. I’m confident that the Developer will honor the agreement and will have access to the funds to make the payment. Keep in mind that they will still have 25% of the community, over 150 homes to close on at that time, so they’ll still be here for some years after that. We also currently have over $220,000 in the Reserve account should any needs arise before the additional funding. I want to be very transparent with you on this, and I believe the Developer does as well.